B. Riley analyst Mayank Mamtani downgraded Madrigal Pharmaceuticals to Neutral from Buy with a price target of $75, down from $131. The analyst sees “elevated uncertainty” into the Phase III nonalcoholic fatty liver disease safety study of resmetirom. Mamtani has “relatively lowered conviction” that the MAESTRO-NASH study biopsy readout anticipated in Q4 to will support regulatory approvals and successful commercialization. While impressed by Madrigal’s totality of the safety dataset across non-cirrhotic and cirrhotic NASH cohorts, the analyst is concerned by the elevated risk to efficacy analyses, now constituting of dual primary endpoints, of NASH resolution and fibrosis improvement.
next post