BUZZ-Madrigal Pharma falls as BofA initiates coverage on with 'underperform' rating

** Shares of Madrigal Pharmaceuticals fall 6.3% to $198.69

** Brokerage BofA initiates coverage with 'Underperform' rating and a price objective of $150

** Investors have largely moved past co's fatty liver disease drug Rezdiffra's best-case scenario FDA approval-with skepticism over the ongoing first-to-market MASH launch and the eventual commercial opportunity - BofA

** Says commercial hurdles such as inclusion criteria in insurance coverage, diagnosis requirements along with a crowded competitive landscape longer-term may cap peak commercial opportunity for Rezdiffra

** Adds there is near-term risk from upcoming trial data from rivals, particularly as Rezdiffra will only be on the market for less than 18 months before GLP-1s are likely approved

** In March, Rezdiffra became the first treatment to receive FDA's nod for the disease known as non-alcoholic steatohepatitis (NASH), which was recently renamed metabolic dysfunction-associated steatohepatitis (MASH)

** BofA forecasts peak sales of $4.1 billion below consensus estimates of $5.5 billion

** MDGL stock down ~11% YTD

(Reporting by Sriparna Roy in Bengaluru)

((Sriparna.Roy@thomsonreuters.com;))