Madrigal Pharmaceuticals' stock experienced a significant pre-market plunge, dropping 6.41% following the release of its fourth-quarter financial results.
The biopharmaceutical company reported Q4 revenue of $321.1 million, which exceeded consensus estimates of $312.49 million, driven by strong sales of its Rezdiffra treatment. However, the company posted a net loss of $58.58 million, with earnings per share of -$2.57, significantly missing analyst expectations which ranged from a loss of $0.40 to $0.90 per share.
Despite the revenue growth attributed to market penetration and disease awareness for Rezdiffra, the company's operating expenses surged to $380.69 million due to commercial activities and business development transactions, contributing to the larger-than-expected quarterly loss.
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