Resmetirom is a small molecule commercialized by Madrigal Pharmaceuticals, with a leading Phase III program in Non-Alcoholic Steatohepatitis (NASH). According to Globaldata, it is involved in 16 clinical trials, of which 11 were completed, and 5 are ongoing. GlobalData uses proprietary data and analytics to provide a complete picture of Resmetirom’s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.

The revenue for Resmetirom is expected to reach an annual total of $823 mn by 2032 in the US based off GlobalData’s Expiry Model. The drug’s revenue forecasts along with estimated costs are used to measure the value of an investment opportunity in that drug, otherwise known as net present value (NPV). Applying the drug’s phase transition success rate to remaining R&D costs and likelihood of approval (LoA) to sales related costs provides a risk-adjusted NPV model (rNPV). The rNPV model is a more conservative valuation measure that accounts for the risk of a drug in clinical development failing to progress.

Resmetirom Overview

Resmetirom (MGL-3196, VIA-3196, THR-Beta agonist 3196) is under development for the treatment of non-alcoholic fatty liver disease (NAFLD), non-alcoholic steatohepatitis. The therapeutic candidate is formulated as tablet and orally administered. The therapeutic candidate acts by targeting beta-selective thyroid hormone receptor.

It was also under development for the treatment of heterozygous and homozygous familial hypercholesterolemia (HeFH, HoFH).

Madrigal Pharmaceuticals Overview

Madrigal Pharmaceuticals (Madrigal), formerly Synta Pharmaceuticals Corp, is a biopharmaceutical company with focus on the development and commercialization of novel drugs for the treatment of liver, cardiovascular and metabolic diseases. Its lead product candidate, resmetirom (MGL-3196), is a proprietary, liver-directed, selective thyroid hormone receptor beta (THR-beta) agonist that can potentially help treat several diseases with high unmet medical need. The company is developing resmetirom for non-alcoholic steatohepatitis (NASH), non-alcoholic fatty liver disease (NAFLD), associated dyslipidemias and familial hypercholesterolemia (FH). The company is also developing MGL-3745 (THR-beta agonist), a preclinical compound that has thyroid receptor selectivity similar to that of MGL-3196. Madrigal is headquartered in West Conshohocken, Pennsylvania, the US.

The operating loss of the company was US$242.5 million in FY2021, compared to an operating loss of US$206.7 million in FY2020. The net loss of the company was US$241.9 million in FY2021, compared to a net loss of US$202.2 million in FY2020.

For a complete picture of Resmetirom’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.

GlobalData

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

To create this model, GlobalData takes into account factors including patent law, known and projected regulatory approval processes, cash flows, drug margins and company expenses. Combining these data points with GlobalData’s world class analysis creates high value models that companies can use to help in evaluation processes for each drug or company.

The rNPV method integrates the probability of a drug reaching a clinical stage into the cash flow at that time, which provides a more accurate valuation, as it considers the probability that the drug never makes it through the clinical pathway to commercialization. GlobalData’s rNPV model uses proprietary likelihood of approval (LoA) and phase transition success rate (PTSR) data for the indication in the highest development stage, which can be found on GlobalData’s Pharmaceutical Intelligence Center.