Madrigal Secures Exclusive License from Pfizer for Ervogastat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
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Should l Buy MDGL?
Source: Newsfilter
Madrigal Pharmaceuticals' stock has hit a 20-day low, dropping 3.25% amid broader market declines.
The company has secured an exclusive global license from Pfizer for ervogastat, a clinical-stage oral DGAT-2 inhibitor, with an upfront payment of $50 million. This agreement strengthens Madrigal's position in MASH therapies and follows promising results from a prior Phase 2 study where 72% of patients achieved at least a 30% reduction in liver fat. Despite this positive development, the stock's decline reflects ongoing market concerns, particularly after a recent downgrade by Wolfe Research, which has overshadowed the potential benefits of the new licensing agreement.
The implications of this licensing deal could be significant for Madrigal, as it enhances their treatment portfolio for MASH. However, the market's reaction indicates a cautious sentiment, suggesting that investors are weighing the potential of this new partnership against the backdrop of recent downgrades and overall market performance.
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Analyst Views on MDGL
Wall Street analysts forecast MDGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDGL is 636.22 USD with a low forecast of 527.00 USD and a high forecast of 900.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 463.420
Low
527.00
Averages
636.22
High
900.00
Current: 463.420
Low
527.00
Averages
636.22
High
900.00
About MDGL
Madrigal Pharmaceuticals, Inc. is a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease with high unmet medical need. The Company’s medication, Rezdiffra (resmetirom), is a once-daily, oral, liver-directed THR-b agonist designed to target key underlying causes of MASH. Rezdiffra is the medication approved by the United States Food and Drug Administration (FDA) for the treatment of MASH with moderate to advanced fibrosis (consistent with stages F2 to F3). Rezdiffra is a prescribed medicine used along with diet and exercise to treat adults with nonalcoholic steatohepatitis (NASH) with moderate to advanced liver scarring (fibrosis), but not with cirrhosis of the liver. An ongoing Phase III outcomes trial is evaluating Rezdiffra for the treatment of compensated MASH cirrhosis (consistent with stage F4c).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Clinical Potential: In a prior Phase 2 study, 72% of patients treated with ervogastat achieved at least a 30% reduction in liver fat, and 61% achieved a 50% reduction, indicating potential additive efficacy when combined with Rezdiffra.
- Future Development Plans: Madrigal plans to conduct a drug-drug interaction study in 2026 and consult with the FDA on the design of a Phase 2 combination trial, further advancing its clinical development of MASH treatment regimens.
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