Madrigal Reports Third Quarter 2016 Financial Results

- Successfully Completed Merger and Transition to Public Company -

- Initiated Phase II study in NASH -

- Out-licensed non-core asset HSP90 to Tarveda Therapeutics -

WEST CONSHOHOCKEN, Pa., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) today reported financial results for the third quarter ended September 30, 2016. For the three months ended September 30, 2016, the company reported a net loss of $14.0 million or $1.34 per share. This compares to a net loss of $1.8 million or $0.25 per share for the same period in the prior year.  For the nine months ended September 30, 2016, the company reported a net loss of $18.6 million or $2.24 per share.  This compares to a net loss of $5.0 million or $0.68 per share for the same period in the prior year. The company ended the third quarter of 2016 with $39.6 million in cash, cash equivalents, and marketable securities.

"During the third quarter, we successfully completed a merger with Synta to transition to a public company and, within 90 days, advanced our lead drug candidate MGL-3196 into a Phase II clinical program in non-alcoholic steatohepatitis (NASH)," said Paul Friedman, M.D., Madrigal chairman and chief executive officer. "Further, we completed a worldwide exclusive out-license of our HSP90 drug conjugate non-core program to Tarveda Therapeutics, Inc. which included upfront and potential milestone payments totaling up to $163 million on the first product developed."

"We believe we have the resources to achieve potentially value creating Phase II milestones for MGL-3196 NASH and familial hypercholesterolemia (FH).  Our novel approach, by targeting an underlying pathophysiologic mechanism of NASH and FH, could address a significant unmet need in these patient populations," concluded Dr. Friedman.

Financial Results for the Three Months and Nine Months Ended September 30, 2016

Operating expenses were $14.1 million and $17.5 million for the three-month and nine-month periods ended September 30, 2016, respectively, compared to $0.9 million and $2.3 million in the comparable prior year periods.