Shares of Madrigal Pharmaceuticals (NASDAQ: MDGL) surged 5.19% in pre-market trading on Tuesday following the release of its third-quarter 2025 financial results. The company reported significant revenue growth driven by strong demand for its drug Rezdiffra, despite wider-than-expected losses.

Madrigal reported Q3 product revenue of $287.268 million, representing a substantial 362.03% increase compared to the same period last year and beating analyst estimates of $245.386 million by 17.07%. This impressive growth was primarily attributed to the increasing demand for Rezdiffra, Madrigal's flagship product for treating non-alcoholic steatohepatitis (NASH). Despite the revenue surge, the company reported a net loss of $114.19 million, or $5.08 per share, which was wider than analyst estimates of $2.16 per share.

Investors appear to be focusing on the positive aspects of the report, including the company's strong revenue growth and optimistic outlook for Rezdiffra sales in 2026. Madrigal also highlighted its recent launch of Rezdiffra in Germany following European Commission approval, signaling potential for further market expansion. Additionally, the company announced a global licensing agreement with CSPC Pharma for an oral GLP-1 receptor agonist, with plans to initiate clinical trials in the first half of 2026. This move into the highly competitive GLP-1 market could further diversify Madrigal's portfolio and drive future growth. With Rezdiffra's patent protection extending to 2045, the company seems well-positioned for long-term success in the thriving biotech sector.