Investing.com -- Shares of Madrigal Pharmaceuticals, Inc. (NASDAQ: NASDAQ: MDGL ) rose 17% following the announcement of their fourth-quarter and full-year 2024 financial results, which included a significant beat on revenue expectations and promising new data from their Rezdiffra trials.

For the fourth quarter, Madrigal reported earnings per share (EPS) of ($2.71), which was $1.77 better than the analyst consensus estimate of ($4.48). The company's revenue for the quarter was reported at $103.32 million, surpassing the consensus estimate of $87.7 million and marking a substantial increase from the previous year when the company had no product sales.

The surge in Madrigal's stock can be attributed to the positive two-year data from the active-treatment open-label compensated MASH cirrhosis (F4c) arm of the Phase 3 MAESTRO-NAFLD-1 trial of Rezdiffra. The results demonstrated a significant mean reduction of 6.7 kPa in liver stiffness, measured by vibration-controlled transient elastography (VCTE), which represents the largest VCTE reduction reported in an F4c MASH patient population to date. Additionally, 51% of patients achieved a ≥25% reduction in liver stiffness, a result associated with reduced progression to end-stage liver disease.

Madrigal's Chief Executive Officer, Bill Sibold, commented on the company's performance, stating, "Looking back on 2024, I’m incredibly proud of what we accomplished. We secured FDA approval for Rezdiffra, the first medicine approved for MASH, in March; executed a first-in-disease launch with remarkable results; and are well positioned for strong performance again in 2025 and beyond."

The company also highlighted its strong financial position with cash, cash equivalents, restricted cash, and marketable securities totaling $931.3 million as of December 31, 2024. This represents an increase from the $634.1 million reported at the end of the previous year, mainly due to the net proceeds from their underwritten public offering in March 2024.

Looking forward, Madrigal's ongoing MAESTRO-NASH OUTCOMES trial could further solidify Rezdiffra's position as a leading treatment for MASH, with data anticipated in 2027. The company expects to launch Rezdiffra in Europe starting in the second half of 2025, pending approval, which could mark the first approved therapy for patients with MASH liver fibrosis in the region.

Madrigal's progress and financial results have clearly resonated with investors, leading to the significant uptick in the stock price. The company plans to present additional findings from the active-treatment open-label cirrhosis arm of the MAESTRO-NAFLD-1 trial at a future medical meeting, potentially providing further catalysts for the stock's performance.

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