Madrigal Pharmaceuticals Reports $137.3 Million Revenue from Rezdiffra Launch, Net Loss Improves to $73.2 Million

Madrigal Pharmaceuticals, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated $137.3 million in product revenue, marking a substantial increase from zero revenue in the same period last year, following the FDA approval and subsequent launch of its drug, Rezdiffra, for the treatment of metabolic dysfunction-associated steatohepatitis (MASH). Despite this revenue growth, Madrigal reported a net loss of $73.2 million, a 50% improvement compared to a net loss of $147.5 million in the prior year.

Operating expenses for the quarter totaled $216.6 million, up 42% from $152.0 million in the previous year. This increase was primarily driven by a significant rise in selling, general, and administrative expenses, which surged to $167.9 million from $80.8 million, reflecting the costs associated with the commercial launch of Rezdiffra. Research and development expenses decreased by 38% to $44.2 million, attributed to changes in accounting for inventory costs following the drug's approval and a reduction in clinical trial expenses.

Madrigal's operational metrics indicate a growing customer base, with notable sales concentrations among a few key customers, including one accounting for 34% of total gross product revenue. The company is also expanding its market presence, with plans to commercialize Rezdiffra in Europe, pending regulatory approval expected mid-2025. The company reported cash, cash equivalents, and marketable securities totaling $848.1 million as of March 31, 2025, down from $931.3 million at the end of 2024, reflecting ongoing operational funding.

Looking ahead, Madrigal anticipates continued losses as it invests in the commercialization of Rezdiffra and potential geographic expansion. The company has indicated that it may need to raise additional capital through equity or debt financing to support its operations and meet future liquidity requirements. Management remains optimistic about the long-term prospects of Rezdiffra and its potential to address the unmet medical needs associated with MASH, which is expected to become a leading cause of liver transplantation in the U.S.