On July 31, Madrigal Pharmaceuticals declined 5.07% in regular trading, trading at $468.38 per share with turnover of $84.64 million, extending the prior session's sharp selloff.

The continued decline stems from the company's Q2 earnings report released on July 30. While core product Rezdiffra delivered net sales of $364.3 million, representing 71% year-over-year growth, and total revenue of $364.3 million exceeded the $353 million analyst consensus, the market focused on deteriorating profitability. The quarterly net loss reached $57.94 million, with EPS loss of $1.99 widening 4.74% from $1.90 a year earlier. As of June 30, more than 49,000 patients were on Rezdiffra, more than doubling from the prior year. Despite the top-line beat and better-than-expected EPS loss versus the $2.50 consensus estimate, investor concerns over the pace of margin improvement triggered sustained selling pressure that carried into a second consecutive session.

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