Madrigal Pharmaceuticals Shares Plunge 11% on Mixed Q4 Results

Madrigal Pharmaceuticals reported a wider-than-expected loss for the fourth quarter of 2025, triggering an 11% drop in its stock price. The company attributed the widening losses to a significant surge in operating expenses, which overshadowed its revenue growth. Despite the bottom-line miss, sales of its flagship MASH treatment, Rezdiffra, exceeded analyst estimates, showcasing strong market demand. However, investors focused on the rising costs associated with the drug's commercial launch and market expansion. The biotech firm now faces the challenge of managing its high cash burn while capitalizing on the commercial success of its newly approved therapy.