NASDAQ$MDGL

Madrigal Pharmaceuticals Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Madrigal reported financial results for Q4 2019 and highlighted progress in executing its business strategy and advancing the development of resmetirom.

Madrigal Pharmaceuticals reported a net loss of $27.74 million for the fourth quarter of 2019, with operating expenses totaling $30.0 million, driven primarily by increased research and development expenses related to Phase 3 studies. As of December 31, 2019, the company's cash, cash equivalents, and marketable securities amounted to $439.0 million.

  • Madrigal initiated two Phase 3 studies in NASH: MAESTRO-NASH and MAESTRO-NAFLD-1.
  • The company expanded its medical operations team and added Jim Daly to its Board.
  • Madrigal believes it has sufficient financial resources to fund its two ongoing Phase 3 clinical studies.
  • Both Phase 3 studies are on track to complete enrollment this year for the 52 week readout by the end of 2021.

Headline financials

EPS (adj)

-$1.80

Previous: -$0.75-140.0%
R&D Expense

$24.9M

No prior period
SG&A Expense

$5.04M

No prior period
Net Income

-$27.7M

Previous: -$11.5M-141.7%
Operating Income

-$30M

Previous: -$14.5M-107.2%
Cash & Equivalents

$439M

No prior period

Revenue & EPS history

Madrigal · Revenue · Quarterly

$311M

Q1 2026+126.8%vs Q1 2025
Beat estimate in 0 of 5 quarters(0%)
ActualEstimate

Forward guidance

Madrigal is focused on the clinical development of resmetirom and anticipates completing enrollment for its Phase 3 studies, MAESTRO-NASH and MAESTRO-NAFLD-1, with a 52-week readout expected by the end of 2021.

Tailwinds

  • Phase 3 studies MAESTRO-NASH and MAESTRO-NAFLD-1 are on track for enrollment completion in 2020.
  • 52-week readout from Phase 3 studies expected by the end of 2021.
  • MAESTRO-NAFLD-1 includes an open label active treatment arm providing data on lipids and non-invasive NASH biomarkers in 2020.
  • Resmetirom has the potential to resolve NASH and reduce liver fibrosis.
  • Resmetirom may decrease cardiovascular risk through reduction of atherogenic lipids.

Headwinds

  • Clinical development of resmetirom is subject to enrollment uncertainties.
  • Outcomes from competitive studies could impact resmetirom's prospects.
  • Achieving potential benefits in larger studies carries inherent risks.
  • Timing and outcomes of resmetirom's clinical studies are uncertain.
  • Clinical testing inherently involves uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.6%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+7.8%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+48.0%

Q3 2024

Best reaction

-23.3%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-1.2%-3.2%
Q4 2025-11.1%-10.5%-10.2%
Q3 2025+7.8%+18.7%+42.2%
Q1 2025-1.9%-11.6%-17.6%
Q4 2024+15.0%+1.3%+5.9%
Q3 2024+48.0%+56.4%+52.0%
Q2 2024-8.6%-9.2%-8.5%
Q1 2024-11.7%-12.9%+2.5%
Q4 2023-1.5%+2.8%+11.4%
Q3 2023+3.6%-5.5%+61.1%
Q2 2023-6.0%-4.5%+6.4%
Q1 2023-5.4%-5.2%-12.8%
Q4 2022-5.4%-7.1%-19.6%
Q3 2022-6.7%-10.1%+12.8%
Q2 2022+22.8%+12.1%+10.8%
Q1 2022-0.2%+1.8%+15.0%
Q4 2021+7.9%+13.1%+9.2%
Q3 2021-0.5%-1.6%-16.6%
Q2 2021+7.5%+0.8%-4.5%
Q1 2021+0.7%+2.3%-22.0%
Q4 2020-1.3%-6.9%-5.3%
Q3 2020-6.8%-2.2%-10.9%
Q2 2020-1.1%-2.2%+2.3%
Q1 2020+2.9%+25.1%+27.6%
Q4 2019-2.5%+2.6%-19.7%
Q3 2019+0.1%+7.9%+22.1%
Q2 2019+2.0%+2.0%+9.8%
Q1 2019+0.2%-3.4%-8.0%
Q4 2018-2.4%+3.1%-6.9%
Q3 2018+5.2%-7.8%-39.7%
Q2 2018-1.0%-5.9%-11.0%
Q1 2018-0.0%+2.2%+138.3%
Q4 2017-16.4%-20.4%-15.8%
Q3 2017-0.2%-5.7%+84.7%
Q2 2017-0.8%+1.7%+13.5%
Q1 2017+2.1%+4.5%-0.3%
Q4 2016-2.2%-4.9%+6.8%
Q3 2016+5.3%+2.4%-1.4%
Q2 2016+3.8%+11.5%+1.9%
Q1 2016+10.5%
Q4 2015-23.3%
Q3 2015+0.0%
Q2 2015-3.4%
Q1 2015+1.3%
Q4 2014-6.1%
Q3 2014+10.6%
Q2 2014+0.5%
Q1 2014+3.3%
Q4 2013-10.1%
Q3 2013+0.9%
Q2 2013-4.2%
Q1 2013+2.5%
Q4 2012-5.0%
Q3 2012-5.2%
Q2 2012+0.3%
Q1 2012-11.2%
Q4 2011+0.2%
Q4 2009+0.2%
Q3 2011+4.4%
Q2 2011-10.1%
Q4 2010-10.1%
Q1 2011+1.6%
Q3 2010-6.1%
Q2 2010-5.6%
Q1 2010-16.5%

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