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Sep 30, 2020

Madrigal Q3 2020 Earnings Report

Madrigal reported third quarter financial results and completed enrollment in Phase 3 MAESTRO NAFLD-1 trial

Key Takeaways

Madrigal Pharmaceuticals announced the completion of enrollment in its MAESTRO NAFLD-1 clinical trial and reported its third quarter 2020 financial results. The company's cash, cash equivalents, and marketable securities totaled $335.9 million. Operating expenses were $58.8 million, with research and development expenses accounting for $53.3 million.

Completed enrollment in MAESTRO NAFLD-1 clinical trial.

Cash, cash equivalents and marketable securities totaled $335.9 million.

Operating expenses for the quarter were $58.8 million.

Research and development expenses for the quarter were $53.3 million.

EPS
-$3.75
Previous year: -$1.39
+169.8%
R&D Expense
$53.3M
Previous year: $19.4M
+174.1%
SG&A Expense
$5.5M
Previous year: $4.75M
+15.8%
Cash and Equivalents
$336M

Madrigal

Madrigal

Forward Guidance

Madrigal expects to report topline 52-week data from the blinded arms of the MAESTRO-NAFLD-1 study by the end of next year and completion of targeted enrollment in the serial liver biopsy portion of MAESTRO-NASH will be delayed past the end of 2020 by a few months.

Positive Outlook

  • Completion of enrollment in MAESTRO-NAFLD-1 will enable reporting of topline 52-week data by the end of next year.
  • Early data from the open label arm of MAESTRO-NAFLD-1 and Phase 2 studies suggest potential to achieve primary and secondary endpoints in Phase 3 NASH program.
  • Week 16 MRE data from MAESTRO-NAFLD-1 open label arm suggests potential for a robust non-invasive imaging test to demonstrate a fibrosis benefit with resmetirom treatment.
  • Resmetirom lowers multiple atherogenic lipids, including LDL cholesterol, apolipoprotein B, triglycerides, and lipoprotein (a).
  • Resmetirom's ability to decrease liver fat and reduce atherogenic lipids are being further evaluated in both MAESTRO Phase 3 clinical studies.

Challenges Ahead

  • COVID-19 pandemic remains unpredictable.
  • Completion of targeted enrollment in the serial liver biopsy portion of MAESTRO-NASH will be delayed past the end of 2020 by a few months.
  • NASH patients are at a substantially increased CV risk compared to the general population.
  • Forward-looking statements are subject to a number of risks and uncertainties including clinical development of resmetirom and enrollment uncertainties.
  • Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made.