The approval of the new drug is a golden opportunity to buy MDGL!
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While $Madrigal Pharmaceuticals(MDGL)$ 's stock price has only gone up about 5% in the past year, things are looking up for this mid-cap biotech company. With its latest medicine approval, Madrigal has successfully entered an underserved market and is ready to start reporting sales for the first time.
On March 14th, the FDA gave the green light to Madrigal's Rezdiffra therapy, the first drug approved to treat metabolic dysfunction-associated steatohepatitis (MASH), which used to be known as non-alcoholic steatohepatitis (NASH).
This drug got approved on an accelerated basis, so regulators are obviously confident in its effectiveness. With about 1.5 million Americans suffering from MASH, and the company's approved therapy able to treat about 315,000 of them, the potential is huge.
Rezdiffra will hit the market in April, and unless the ongoing confirmatory clinical trials throw up some unexpectedly bad data, its early approval could soon turn into a full-fledged one. And that's the main reason why this stock is worth buying.
As the only company with an approved product in the MASH therapy market, Madrigal will have no trouble establishing a solid market share.
Plus, there's potential for further development of Rezdiffra to expand its indications. Wall Street analysts are bullish on this biotech company's sales prospects. They're expecting an average of $86 million in sales this year,with predictions rising to $379 million by 2025.
Overall, it's a great time to grab a few shares of MDGL before Madrigal starts to realize sales revenue. But it won't be gobbling up the market to itself forever. MASH is a hot target for large and small pharmaceutical companies alike, and competitors are still on the way.
But for now, this biotech company is on a high-growth trajectory, and its journey to the top has officially begun. That's what makes Madrigal stock so appealing right now.
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