Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL) has recently provided a summary of its corporate updates and financial results for the fourth quarter and full year of 2023. The company reported having cash, cash equivalents, and marketable securities amounting to $634 million as of December 31, 2023, compared to $358.8 million at the same time in 2022, indicating a notable increase.
Operating expenses for the three and twelve-month periods ended December 31, 2023, were $117.2 million and $380.5 million, respectively, compared to $85.3 million and $293.6 million in the corresponding periods of the prior year. Research and development expenses for the same periods were $70.6 million and $272.4 million, compared to $70.7 million and $245.4 million in the prior year, primarily due to a scale-up of manufacturing activities in preparation for the launch of resmetirom and an increase in R&D personnel.
General and administrative expenses for the same periods were $46.5 million and $108.1 million, compared to $14.6 million and $48.1 million in the corresponding prior year periods. The increases were mainly attributed to commercial activities in preparation for the expected approval and launch of resmetirom, with further expected increases as the company expands its operating activities associated with the commercialization of resmetirom.
Interest income for the three and twelve-month periods ended December 31, 2023, was $9.0 million and $19.6 million, respectively, compared to $1.1 million and $2.2 million in the corresponding prior year periods, primarily due to a higher average principal balance in the investment account and a higher average interest rate in 2023.
Interest expense for the same periods was $4.0 million and $12.7 million, compared to $1.7 million and $4.0 million in the corresponding prior year periods, driven by the higher outstanding principal balances during the period under the company’s loan facility as well as a higher average interest rate in 2023.
The company announced the appointment of Mardi C. Dier as Chief Financial Officer, bringing over 20 years of executive financial leadership roles in biotechnology companies. Additionally, other appointments were made to the Madrigal leadership team since the fourth quarter of 2023, including the Chief Commercial Officer, Chief Information Officer, Chief Human Resources Officer, Chief Business Officer, and Chief Investor Relations Officer.
Madrigal Pharmaceuticals remains focused on advancing key regulatory, operational, and commercial activities in preparation for a potential U.S. launch of resmetirom, with the goal of establishing it as the foundational therapy for nonalcoholic steatohepatitis (NASH) with significant fibrosis.
The company's lead candidate, resmetirom, is a liver-directed oral therapy designed to target key underlying causes of NASH. Madrigal estimates that approximately 1.5 million patients have been diagnosed with NASH in the U.S., of which about 525,000 have NASH with significant fibrosis, and it plans to focus on approximately 315,000 diagnosed patients with NASH with significant fibrosis under the care of liver specialist physicians during the launch of resmetirom.
