Madrigal Pharma Short Interest Reaches 4-Month High: Retail Investors Still Bullish On Stock

​Short interest in Madrigal Pharmaceuticals rose to a four-month high, Ortex data showed, as bearish positions increased despite recent signs of stabilization in the stock following a multi-session decline.

Madrigal’s stock closed at $294.64 on Friday, down $4.93 or 1.65%

Short interest as a percentage of free float climbed to 38.9% from 34.8%, marking the highest level since early January, as per a report on The Fly. The days-to-cover ratio edged lower by 30 basis points to 6.7.

The increase came as Madrigal shares found some support over the past two trading sessions, following four consecutive days of losses. The stock is down 6.1% year-to-date.

The build in short positions follows Madrigal’s first-quarter earnings report last week. The company reported a net loss of $3.32 per share, narrower than analysts’ expectations for a $3.79 loss. 

Revenue for the quarter came in at $137.25 million, above the $114.19 million consensus estimate.

CEO Bill Sibold said the company has delivered Rezdiffra to more than 17,000 patients since its approval as the first FDA-approved treatment for MASH, a progressive liver disease associated with metabolic dysfunction. 

He added that providers have reported improvements in liver stiffness, fat, enzymes, LDL, and triglyceride levels.

On Saturday, Madrigal announced two-year results from the open-label compensated MASH cirrhosis arm of its Phase 3 MAESTRO-NAFLD-1 trial. 

Patients treated with Rezdiffra showed statistically significant improvements in liver stiffness, fat, fibrosis biomarkers, liver volume, and clinically significant portal hypertension (CSPH) risk scores.

Among patients with CSPH at baseline, 65% moved into lower-risk categories by year two. Of those with probable CSPH, 57% moved to the no/low-risk category, while 14% progressed to confirmed CSPH. 

The safety profile remained consistent with previous studies. Rezdiffra was well-tolerated, with a low rate of discontinuation due to adverse events. 

The most common side effects were diarrhea, COVID-19, and nausea. Two deaths occurred during the study but were not attributed to the drug.

On Stocktwits, sentiment was 'bullish' amid ‘high’ message volume.

One user anticipated a rise in Madrigal stock on Monday, expressing confidence in the stock's upward momentum. 

Another user echoed a similar sentiment, highlighting the potential demand for Rezdiffra, suggesting that both patients with MASH and healthcare providers would likely favor the treatment due to its lack of side effects.

The stock has declined 6.1% so far in 2025.

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