Madrigal Pharmaceuticals Inc (MDGL)

[DMOST]

5 Biotech Stocks to Play the Sector’s Next Big Trend: NASH

Madrigal Pharmaceuticals Inc (MDGL)

Jarred lighting could be the only way to describe biotech stock Madrigal Pharmaceuticals (NASDAQ:MDGL). After two successful initial trials for its MGL-3196 drug, shares of MGDL have been off to the races — jumping over 128% since the beginning of the year. And that jump is pretty justified.

That key drug is a hormone inhibitor that is absorbed in the liver and early trials it performed beautifully. Patients receiving MGL-3196 exhibited a highly significant reduction in liver fat versus those on placebo. But what was really was impressive is that roughly 50% of the patients also saw their liver fibrosis resolved. That’s massive because fibrosis resolution would be considered an FDA-approvable endpoint for a study. It one quick shot, MDGL went from an unknown to one of the biggest NASH players. The biotech is currently planning a late-stage study for MGL-3196 soon.

But retail investors aren’t the only ones looking at MDGL in spades. It’s starting to get attention from other suitors as well. Rumors have begun to swirl that Bristol-Myers Squibb (NYSE:BMY) is looking into buying the firm. Management seems pretty receptive to the buyout as well.

The only problem is that Madrigal’s pipeline is literally just this drug. Investors have already placed a lot of faith into it and a buyout. If those don’t happen, MDGL will come crashing back to earth ASAP. On the flipside, the gains could be endless if it manages to get the dug to market. When it comes to the biotech stocks on this list, it has the highest risk/reward.
https://finance.yahoo.com/news/5-biotech-stocks-play-sector-192123669.html