Madrigal Pharmaceuticals (MDGL) shares tumbled 7.56% in pre-market trading on Thursday after the company reported second-quarter financial results that showed a widening net loss and escalating operating expenses, overshadowing robust sales growth for its liver disease drug Rezdiffra.

Net product revenue for the quarter came in at $364.3 million, a 71% increase year-over-year, while the net loss expanded to $57.9 million, or $1.99 per share, from a loss of $42.3 million, or $1.50 per share, a year earlier. Although the loss per share was narrower than the FactSet consensus estimate of a $2.68 loss, total operating expenses climbed to $420.6 million from $260.0 million in the prior-year quarter, driven by a $25 million one-time business development charge, higher R&D spending, and increased investment in commercial activities for Rezdiffra. Additionally, the company's cash, cash equivalents, and marketable securities fell to $838.9 million as of June 30, from $988.6 million at the end of 2025.

On the operational front, the company highlighted that more than 49,000 patients were on Rezdiffra as of the quarter's end, and it initiated a Phase 1 trial for its oral GLP-1 candidate MGL-2086. However, the sharp rise in costs and the deteriorating bottom line sparked a pre-market sell-off, as investors weighed the heavy spending against the strong top-line growth.