Madrigal falls after Viking's fatty liver disease study hits primary goal

Shares of Madrigal Pharmaceuticals (MDGL) are sliding in pre-market trading after the company's competitor, Viking Therapeutics (VKTX), announced top-line results from a Phase 2 study of VK2809, its novel liver-selective thyroid receptor beta agonist, in patients with non-alcoholic fatty liver disease, or NAFLD, and elevated low-density lipoprotein cholesterol, or LDL-C. The study successfully achieved its primary endpoint, with patients receiving VK2809 demonstrating statistically significant reductions in LDL-C compared with placebo. In addition, the trial's secondary endpoint was achieved, with VK2809-treated patients experiencing statistically significant reductions in liver fat content compared with placebo. Citi analyst Joel Beatty recently started Madrigal with a Buy rating and $340 price target, telling investors that the company's MGL-3196 appears to be the favorite among four non-alcoholic steatohepatitis drugs in late stage development. In pre-market trading following Viking's announcement, Madrigal shares are down $33.83, or roughly 15%, to $194.60.