Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL)
Shares of Madrigal Pharmaceuticals, Inc. stock skyrocketed more than 147% on Thursday to reach a new high of $279.26 having closed the previous session at $108.43.
The stock’s sharp rise came after an announcement from the Pennsylvania-based pharma that a mid-stage liver drug study it had been carrying had shown “high likelihood of success.”
The company was carrying out a study of its lead oral drug, MGL-3196 in patients suffering from non-alcoholic steatohepatitis (NASH)/fatty liver disease.
As per the results of the study, the drug reduced liver fat in the affected patients, thus giving the company an advantage over its larger competitors to take on a potential $30 billion market.
Currently, there is no approved treatment for NASH, and the lucrative market size has caused a rush among large pharmaceuticals to partner with smaller drug makers that have potential drugs to treat the disease.
The pharmaceutical company now has an edge over other drug makers working to develop a cure for the NASH. Such companies include Intercept Pharmaceuticals, Gilead Sciences, and Allergan Plc.
Non-alcoholic steatohepatitis is not often diagnosed, and is also among the fastest rising diseases in developed nations. In addition, medical experts believe that by 2020, it will be the main cause of liver transplants.
Although NASH is not associated with alcohol use, medical experts say obese individuals and those suffering from diabetes are more likely to get the disease.
Madrigal CEO Comments
Chief Executive Officer of Madrigal, Paul Friedman said, “The degree of NASH resolution, an approvable FDA endpoint, in patients who received MGL-3196 for 9 months we believe suggests a high likelihood of success in a larger trial with a somewhat longer treatment period in a Phase 3 study designed similarly to this Phase 2 study, pending regulatory agreement with such a design. Further, considering what we have learned regarding drug exposure and dosing, we believe there is potential to resolve NASH in as little as 9 months in 30-40% of patients receiving only MGL-3196, a well-tolerated once a day oral therapy.”
Madrigal Pharmaceuticals, Inc. Company Profile
Madrigal Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company founded in 2011. It engages in the commercialization and development of therapeutic candidates for treating nonalcoholic steatohepatitis (NASH) and cardiovascular-metabolic diseases.
The lead product of the company is MGL-3196, a Phase 2-ready oral, once-daily, liver-directed THR-b (selective thyroid hormone receptor-b) agonist for the treatment of nonalcoholic steatohepatitis, and homozygous and heterozygous familial hypercholesterolemia (FH).
The company’s product pipeline also comprises MGL-3745 that is used in the treatment of familial hypercholesterolemia and nonalcoholic steatohepatitis.
MGL-3196 has completed multiple and single dose trials of Phase 1 healthy volunteers. MGL-3196 is being developed for hypercholesterolemia/dyslipidemia to lower low-density lipoproteins cholesterol, and triglyceride levels.
MGL-3196 increases fat metabolism in the plasma and liver to reduce triglycerides and show an anti-diabetic action.
It specifically targets liver receptors that are involved in cholesterol regulation and metabolism to avoid side effects linked with activation of thyroid hormone receptors outside the liver, including those mediated by selective thyroid hormone receptor-b receptors.
MGL-3196 regulates cholesterol metabolism and hepatic triglyceride metabolism.
The company was founded by Edward Chiang and Rebecca Taub and is based in Fort Washington, Pennsylvania. –Madrigal pharma