JMP says Madrigal selloff misplaced, ups target to $409

JMP Securities analyst Jonathan Wolleben raised the firm’s price target on Madrigal Pharmaceuticals to $409 from $405 and keeps an Outperform rating on the shares. The analyst expects the FDA’s acceptance of the resmetirom new drug application by September will prompt investors to speculate on both approvability and a potential takeout of the company. The firm thinks Madrigal shares will react positively in September if the FDA grants resmetirom Priority Review and determines a panel meeting is not necessary. JMP would not view a panel meeting as a risk to approval, but says a potential buyer would likely want to wait and see the meeting results. It attributes the weakness in Madrigal shares today to the data for semaglutide and the expectation that GLPs will cure nonalcoholic steatohepatitis Think is misplaced, says JMP, which would be continue to buy the stock on the belief that resmetirom’s approval is highly likely.