Madrigal (MDGL) shares ended the last trading session 12.3% higher at $518.76. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.2% gain over the past four weeks.
Madrigal Pharmaceuticals’ stock price increase reflects growing investor confidence driven by recent pipeline advancements. The company recently has entered into an exclusive global licensing agreement with Suzhou Ribo Life Science Co. Ltd. (Ribo) and its subsidiary, Ribocure Pharmaceuticals AB (Ribocure), covering six preclinical small interfering RNA (siRNA) programs, further strengthening its pipeline of innovative and combination therapies for metabolic dysfunction-associated steatohepatitis (“MASH”). Under the terms of the agreement, Madrigal obtained exclusive worldwide rights to develop, manufacture and commercialize the six siRNA candidates. Madrigal anticipates submitting an investigational new drug application for each of the initial siRNA candidates to the FDA this year.
This biopharmaceutical company is expected to post quarterly loss of $3.62 per share in its upcoming report, which represents a year-over-year change of -9%. Revenues are expected to be $301.88 million, up 120% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Madrigal, the consensus EPS estimate for the quarter has been revised 52.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MDGL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Madrigal is part of the Zacks Medical - Drugs industry. Rigel Pharmaceuticals (RIGL), another stock in the same industry, closed the last trading session 0.3% higher at $26.37. RIGL has returned -24.1% in the past month.
Rigel's consensus EPS estimate for the upcoming report has changed -5% over the past month to $0.86. Compared to the company's year-ago EPS, this represents a change of +36.5%. Rigel currently boasts a Zacks Rank of #3 (Hold).
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Madrigal Pharmaceuticals, Inc. (MDGL): Free Stock Analysis Report
Rigel Pharmaceuticals, Inc. (RIGL): Free Stock Analysis Report