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Jefferies doesn’t think GLP-1s will eliminate Madrigal opportunity in NASH

Jefferies doesn’t think GLP-1s will eliminate Madrigal opportunity in NASH

Jefferies notes that Eli Lilly’s (LLY) tirzepatide’s 52-week fibrosis improvement in SYNERGY-NASH hit the firm’s bull case based on the EASL abstract and that it is “becoming more clear that GLP-1s may be step-edited before resmetirom.” However, the firm doesn’t think GLP-1s will “eliminate” the market opportunity for Madrigal Pharmaceuticals (MDGL) in NASH, the analyst added. The firm currently estimates “conservative penetration” for resmetirom to get to its $2.3B peak sales estimate in the U.S., the analyst tells investors. Jefferies has Buy ratings on both Madrigal and Lilly shares.

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