What Makes Madrigal Pharma (MDGL) One of the Shorted Biotech Stocks to Buy

Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is one of the 10 most shorted biotech stocks to buy according to hedge funds.

On February 20, Bank of America Securities lowered the price target on Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) from $570 to $529, resulting in upside potential above 22%. The firm maintained its Neutral rating on the stock.

Following the company’s quarterly results and the associated call, the firm modestly lowered its financial forecasts. The adjustment incorporates management’s comments regarding gross-to-net adjustments.

Back on February 19, Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) reported Q4 EPS of $2.57 with revenue of $321.083 million, modestly above consensus. Bill Sibold, Chief Executive Officer of Madrigal, stated:

“2025 marked a defining year for Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL). We solidified our position as the undisputed leader in MASH highlighted by nearly $1 billion in Rezdiffra sales in its first full year of launch. And we’re just getting started – having penetrated only a fraction of a market that we believe has decades of growth ahead. We believe 2026 will be even more exciting where we expect another year of robust net sales growth driven by broad first-line access, increasing disease awareness and the outstanding real-world experience with Rezdiffra reported by patients and providers.”

Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is a biopharmaceutical company with a sharp focus on tackling a serious and underserved liver disease called MASH. Their flagship product, Rezdiffra, works directly on the liver to address the root causes of the condition, offering patients much-needed attention in an area where effective therapies have long been lacking.

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