Madrigal Wins FDA Approval for First-of-Its-Kind NASH Drug, Launches Rezdiffra in Promising Multibillion-Dollar Market
• Madrigal Pharmaceuticals won FDA approval for resmetirom, the first drug targeting the multibillion-dollar NASH market. The drug will be marketed as Rezdiffra.
• NASH is a leading cause of liver-related deaths, with cases expected to reach 98 million globally by 2030. The market potential is estimated at tens of billions up to $100 billion.
• Rezdiffra will launch in April and have the NASH market to itself initially, though competitors like Novo Nordisk are running late-stage studies.
• Madrigal's market cap is around $5.7 billion, a low multiple of Rezdiffra's projected $5.5 billion in peak global sales.
• The stock looks attractive for aggressive investors given the first-mover advantage, massive market potential, and relatively low valuation based on projected sales.