Madri­gal's stock soars on promis­ing PhII da­ta in NASH, but ques­tions linger

The stock is fly­ing for Madri­gal Phar­ma­ceu­ti­cals fol­low­ing news that its fat­ty liv­er dis­ease drug suc­cess­ful­ly pared down liv­er fat in Phase II tri­als. Shares jumped more than 100% Wednes­day morn­ing as the Philadel­phia com­pa­ny preps to com­pete with ti­tans in the space.

Madri­gal $MDGL, which merged with can­cer drug mak­er Syn­ta Phar­ma­ceu­ti­cals last year, is de­vel­op­ing small mol­e­cule drugs in car­dio­vas­cu­lar-meta­bol­ic dis­eases and the hot (and in­creas­ing­ly crowd­ed) field of non-al­co­holic steato­hep­ati­tis (NASH).

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