Madrigal Pharmaceuticals Announces $300+ Million in Financing Events

Madrigal Pharmaceuticals

CONSHOHOCKEN, PA — Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL) announced that it recently raised $259 million in gross equity (or $255 million in net proceeds) from equity securities issuances and an additional $50 million in liquidity commitments following the achievement of the clinical milestone under its Hercules Credit Facility.

Paul Friedman, M.D., Chief Executive Officer of Madrigal, stated: “The financings secured following the positive topline readout of our Phase 3 MAESTRO-NASH trial reflect the strong support that Madrigal has established with long-standing strategic and institutional investors. The funds provide a solid foundation for the road ahead and will be used to support planned commercial and clinical activities through potential accelerated approval of resmetirom in the U.S.”

Madrigal has completed $159 million in gross sales of common stock under its ATM Program (“ATM Sales”) and has separately entered into a $100 million definitive securities purchase agreement with two of its existing institutional investors for the purchase of $90 million in shares of Series B Convertible Preferred Stock (the “Series B”) and $10 million in shares of the Company’s common stock (“Registered Direct Sales”).

The Registered Direct Sales were made to two long-standing institutional stockholders of Madrigal and is anticipated to close on or about December 23, 2022. The Series B is substantially identical to the Series A Convertible Preferred Stock issued by the Company in 2017, with the most significant difference being the current conversion price of $225 per common share. The total number of shares of common stock (including common stock equivalents) sold through the ATM Sales and the Registered Direct Sales totaled 1,183,344 common equivalent shares.

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In connection with Madrigal’s December 19, 2022 announcement of positive topline data from its pivotal Phase 3 MAESTRO-NASH clinical trial of resmetirom, Hercules Capital, Inc. (NYSE: HTGC) confirmed that Madrigal has achieved its clinical milestone under the Company’s Credit Facility with Hercules, thereby enabling Madrigal to draw upon a $50 million clinical milestone tranche over the next three months.

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