Many have turned to the new "wonder drugs" (GLP-1 receptor agonists) from Eli Lilly and Novo Nordisk. Unfortunately, these drugs aren't the cure for everyone.
If you're overweight, fatty liver disease is waiting around the corner for you.
Nearly 65% of U.S. adults are projected to have a fatty liver disease, known by the acronym MASH, by 2030.
Over the last few decades, dozens of biotechnology companies have tried (and failed) to develop a cure for the disease.
Investors have lost fortunes in the process.
Enter Madrigal Pharmaceuticals.
In March 2024, the company was granted FDA approval for its oral medication, Rezdiffra. This is the first MASH medication ever approved.
The chairman and director of the company, Julian Baker, is one of the most respected names in the entire biotech industry.
We wrote a deep dive on why we (and many others) follow his fund, Baker Brothers Investments. You need to check it out if you haven't already.
The Baker Bros. nailed this trade!
Since the rollout of Rezdiffra began, insurance companies and medical professionals alike have accepted the new medication faster than expected.
Investors love it.
Madrigal is making $$$ for the first time:
Madrigal had its best earnings reaction ever last quarter on the heels of far better-than-expected sales data.
The stock is in a new era where the sky is the limit.
Madrigal Pharma has carved out one of the best accumulation patterns in the entire market.
Our Aunt Louise Yamada taught us, "The bigger the base, the higher in space."
You won't find many bases bigger than this one.
For context, the stock crashed over 95% from 2013-2016 and rallied over 6,000% from 2016-2018.
Additionally, the breakout level coincides with the 2007 IPO price, which strengthens our conviction in its significance.
Here's how we're trading Madrigal Pharma $MDGL:
We're long $MDGL above the shelf of former highs around 310. The breakout will be confirmed once the stock closes above 425.
