Just weeks after the company’s promising NASH data rocketed its stock nearly 150%, Madrigal is getting another boost to its share price today on buzz of a potential buyout.
The West Conshohocken, Pennslyvania-based company, which has just nine employees and a current market cap of $4.3 billion, is considering a sale after getting takeover interest from potential buyers, Bloomberg reported Wednesday.
If true, the timing is certainly in Madrigal’s favor, considering the company’s valuation got a significant bump just two weeks back when its stock price jumped from $108 to $265 overnight. Investors were reacting to news of Madrigal’s Phase II study results, which boded well for the company’s product: MGL-3196. The key endpoints centered on the resolution of NASH, with 56% of the patients in the MGL-3196 group seeing a greater than two point reduction in their NAS score, compared to 32% in the placebo arm after 36 weeks. And among the 12-week responders the score was higher, at 70%. NASH resolution was achieved in 27% of the drug arm and in 39% of the early responders — clearly upbeat results for the biotech. In the placebo group, only 6% achieved NASH resolution.
Rising obesity rates have made NASH a darling in the drug development crowd, and clearly Madrigal’s success is attracting buyers interested in the space.
Sourcing unnamed persons familiar with the matter, Bloomberg reports Madrigal is working with Centerview Partners Holdings on the potential sale.
Madrigal’s stock $MDGL is up nearly 10% Wednesday afternoon on the news.
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