Madrigal Pharmaceuticals' stock experienced a sharp decline in pre-market trading, plummeting 8.75% following the release of its fourth-quarter financial results.
The biopharmaceutical company reported a quarterly net loss of $2.57 per share, significantly missing analyst estimates which ranged from a loss of $0.40 to $0.90 per share. This wider-than-expected loss occurred despite the company's revenue of $321.1 million beating consensus estimates of $312.5 million, driven by strong sales of its Rezdiffra treatment for metabolic dysfunction-associated steatohepatitis (MASH).
The substantial earnings miss prompted a negative reaction from investors, overshadowing the positive revenue performance and leading to the significant pre-market sell-off in Madrigal's shares.
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