MDGL Stock In Focus — Retail Traders Buzz Over M&A Speculation And Fresh Patents For Liver Drug

• Rezdiffra is Madrigal’s only marketed product.
• The company is currently seeking to expand its MASH pipeline.
• Big pharma player Eli Lilly and Co has been speculated as a potential buyer for Madrigal since a rumor to the effect emerged in March.

Madrigal Pharmaceuticals (MDGL) garnered retail attention on Monday as investors gauged the company’s recent patents for its liver disease drug and the chances of a potential deal for the company.

Shares of the company fell 1% on Monday.

MDGL’s Fresh Patents

Madrigal Pharmaceuticals announced earlier on Friday that it has received three new U.S. patents for its lead drug, Rezdiffra (resmetirom), further strengthening the company’s intellectual property position in the treatment of metabolic dysfunction-associated steatohepatitis (MASH), a serious, progressive liver disease marked by fat accumulation, inflammation, and cell damage. The new patents build on an existing key patent that already provides protection into 2045. They cover important aspects of how the drug is used in patients with moderate-to-advanced liver scarring as well as in those with early-stage cirrhosis.

Rezdiffra is Madrigal’s only marketed product. It is the first medication approved by the FDA and the European Commission for adults with MASH who have moderate to advanced liver fibrosis. It is taken as a once-daily oral pill and works by targeting key processes in the liver that drive fat buildup and scarring.

The drug has seen strong commercial uptake. For the full-year 2025, the company reported Rezdiffra net sales of $958.4 million. There were more than 36,250 patients on Rezdiffra as of the end of 2025, the company said.

Other Pipeline Development Efforts

Madrigal also licensed global rights to six pre-clinical siRNA programs from Suzhou Ribo Life Science Co. Ltd.  and its subsidiary Ribocure Pharmaceuticals AB in February for up to $4.4 billion to expand its pipeline. The company is looking to undertake non-clinical studies for some of the candidates in 2026.

In January, the company announced an exclusive global license agreement with Pfizer for its MASH candidate Ervogastat in yet another attempt to expand its pipeline. Madrigal plans to study the drug in combination with Rezdiffra, aiming to treat patients with moderate to advanced liver fibrosis. Data from a study on the interaction between the two drugs is expected later this year.

How Did MDGL Retail Traders React?

On Stocktwits, retail sentiment around MDGL stock stayed within the ‘bearish’ territory while message volume stayed at ‘high’ levels. According to the platform’s internal data, retail chatter around MDGL stock has risen 150% over the past three months.

A Stocktwits user opined that Madrigal can buy smaller rival pharma player Galectin Therapeutics to expand its portfolio. Galectin is developing belapectin for MASH patients with cirrhosis and portal hypertension.

Another user said that big pharma player Eli Lilly and Co might choose between either Madrigal or Galectin to expand its own liver disease pipeline. Lilly has often been touted as a potential buyer for Madrigal after rumors originated on the merger and acquisition-focused Betaville blog in March.

A third user said that they are holding the stock for a buyout announcement.

According to data from Koyfin, 13 of the 15 analysts covering MDGL rate it 'Buy' or higher, while two rate it 'Hold.' The stock has a 12-month average price target of $678.71, representing a potential upside of about 28% from the stock’s closing price on Monday.

MDGL stock has fallen 9% year-to-date.

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