1121 ET - Madrigal Pharmaceuticals has won many fans on Wall Street since scoring the first FDA approval of a drug to treat the fatty liver disease known as MASH, but Bank of America isn't among them. BofA analyst Alexandria Hammond initiates coverage of Madrigal with an underperform rating and a $150 price objective, saying payer pushback on the $47,000 annual price tag of the drug, Rezdiffra, could prompt a slow launch. BofA says it sees meaningful commercial hurdles that are likely to limit Madrigal's upside potential, and the firms forecast peak sales of $4.1 billion, below Wall Street's $5.5 billion consensus. BofA also warns that Madrigal's lean pipeline gives it limited downside protection. Madrigal down 6.1% to $199.15. (colin.kellaher@wsj.com)
(END) Dow Jones Newswires
April 22, 2024 11:21 ET (15:21 GMT)
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