On July 30, Madrigal Pharmaceuticals fell 6.74% in pre-market trading, trading at $508.12/share, with turnover of $754,800.

The decline came despite the company reporting second-quarter results that exceeded Wall Street expectations on both top and bottom lines. Madrigal posted a net loss of $1.99 per share, beating the analyst consensus estimate of $2.50 by 20.4%, while quarterly product revenue of $364.252 million surpassed the $353.178 million estimate. However, the per-share loss widened 4.74% year-over-year from $(1.90), with total net loss reaching $57.939 million for the quarter.

The company's core product Rezdiffra delivered net sales of $364.3 million, representing 71% year-over-year growth. As of June 30, more than 49,000 patients were on Rezdiffra, more than doubling from the prior-year period. Despite the operational momentum, the stock faced selling pressure as the widening loss trajectory weighed on investor sentiment. Wells Fargo recently initiated coverage with an Outperform rating and a $685 price target.

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