Madrigal Pharmaceuticals (NASDAQ:MDGL) stock is rising higher on Friday after the company got positive news from the U.S. Food and Drug Administration (FDA)!
The big news here is the FDA granting accelerated approval for Rezdiffra as a treatment for adults with noncirrhotic nonalcoholic steatohepatitis (NASH) with moderate to advanced liver fibrosis. The treatment is expected to be used alongside diet and exercise.
Investors are excited about this news, as there currently aren’t any approved treatments for NASH. The approval comes after a clinical trial saw Rezdiffra successfully treat NASH without worsening fibrosis. The same study also saw the drug cause an improvement in fibrosis.
It’s also worth mentioning that Rezdiffra doesn’t require a liver biopsy for treatment. Instead, the dosage amounts for patients are made solely on body weight.
What’s Next for MDGL Stock?
The company is gearing up for the launch of Rezdiffra in the U.S. This has it targeting an April launch with a release through a limited specialty pharmacy network.
Considering the positive news on today’s approval, investors are likely to see further benefits once the drug hits the market. That could result in strong earnings reports for Madrigal Pharmaceuticals in the quarters to follow.
MDGL stock is up 18.7% as of Friday morning with more than 1 million shares traded. The company’s daily average trading volume is about 493,000 shares.
There are most stock market stories worth diving into below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
