Madrigal Pharmaceuticals, Inc.

Good morning, and thank you for standing by. Welcome to Madrigal Pharmaceuticals' first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I would now like to introduce Ms. Tina Ventura, Chief Investor Relations Officer. Please go ahead.

Thanks, Brula. Good morning, everyone, and thank you for joining us to discuss Madrigal's first quarter 2026 earnings. We issued a press release this morning and posted a slide deck to accompany this webcast on the Investor Relations section of our website. On the call with me today is Bill Sibyl, Chief Executive Officer, Dave Sorgel, Chief Medical Officer, and Marty Deer, Chief Financial Officer. They will provide prepared remarks, followed by Q&A. Please note on slide two, we will be making certain forward-looking statements today. We refer you to our SEC filings for a discussion of the risks that may cause actual results to differ from the forward-looking statements. With that, I will now turn the call over to Bill on slide three.

Thanks, Tina. Good morning and thanks for joining us. 2026 is off to a terrific start. We've made impressive progress towards our strategic growth priorities to maximize the value of ResDifera and build our pipeline. ResDifera has achieved blockbuster status, generating more than $1.1 billion in net sales in the last 12 months. That's a billion-dollar run rate in a market that's still in its infancy. Penetration is low, the diagnosis rate is low, unmet need is high, and the market is expanding at a double-digit pace. When you put those fundamentals together, the future growth opportunity is quite remarkable. Competition has helped grow the market, but not at the expense of ResDifera. Beyond F2, F3, MASH, we're advancing our F4C outcomes trial, where an indication expansion could double the opportunity for ResDifera. And because we believe this is one of the most compelling opportunities in the industry, we've moved quickly to build the leading pipeline in MASH. We added to it yesterday with a new siRNA asset that targets a mutation in the PNPLA3 gene, a genetically validated driver of disease in a meaningful subset of patients. When you step back, it is hard to find another opportunity with this combination of market fundamentals and product strength. We have a first in disease approval, a foundational therapy, a rapidly expanding market, and we are building an industry-leading pipeline. We believe Madrigal is exceptionally well positioned to win here and continue to shape the future of MASH. I'll begin with an update on the ResDifera launch, hand it to Dave to discuss our pipeline and R&D strategy, and Marty will wrap up with a review of our financials. Turning to slide five in net sales, first quarter 2026 net sales were $311 million, representing year-over-year growth of 127%. This performance continues to reinforce that ResDiffer is tracking in line with, and in many cases exceeding, the best in class specialty launches we compare ourselves to. Over the last two years, we have wired the system to drive ResDiffer's growth. We built a large and growing prescriber base, secured first line access with commercial payers, and established ResDiffer as the foundational therapy in MASH. Combined with ResDiffer's differentiated profile, and strong patient adherence, our execution has enabled us to steadily add patients quarter over quarter as shown on slide six. We ended the first quarter with more than 42,250 active patients on ResDifera. On a year-over-year basis, patients on therapy increased by two and a half times compared to the first quarter of 2025. That is a significant achievement by any standard, but especially in a market that didn't exist before ResDiffers approval. This momentum reflects strong execution by the team, the clear unmet need in MASH, and continued demand from both prescribers and patients. And importantly, we are seeing that momentum carried into the second quarter. Slide seven shows how quickly the MASH market is expanding. Since launch, we've seen the U.S. addressable market grow nearly 50% from 315,000 patients at the end of 2023 to 460,000 patients at the end of 2025. These are diagnosed F2, F3 patients seen by our target specialists. ResDiffers approval, together with increased industry investment, has helped transform the market by driving greater awareness, referrals, diagnosis, specialist involvement, and more patients seeking care. And yet, this market is still in its earliest stages. The diagnosis rate is just over 10%, and resdifer penetration remains just under 10% of the 460,000 addressable patients. The match market has expanded rapidly, and the opportunity ahead is substantial. That gives us a clear path to peak sales, and we believe no company is better positioned than Madrigal to capitalize on it. But being first in a large and growing market is only part of the story. We have established this leadership position because ResDifera is delivering what the MASH market wants. And that is what slide eight highlights. After two years on the market, three things are clear. First, profile matters. ResDifera is the only approved liver-directed therapy in MASH. It has broad proven efficacy across all patient subtypes and is an oral, once daily, well-tolerated medicine with no titration requirements. In a chronic disease, this profile is a key reason why we continue to see strong persistence and increasing depth of prescribing. Second, real-world performance matters. Clinical trials get a drug approved, but real-world experience determines a product's success. With tens of thousands of patients treated, we've received overwhelming feedback from the community that ResDifera's efficacy continues to exceed expectations in the real world. This includes improvements across liver stiffness, liver fat, liver enzymes, LDL cholesterol, and LP little a. This is the kind of real-world experience that builds confidence with prescribers and helps establish a true standard of care. And third, We have built not only a leading product, but a leading MASH company. We have the right team, the right model, and the right start in a market we developed from the ground up. We have executed one of the best launches in the industry where our differentiated specialty model has set a high bar for anyone launching in this space. And we have learned, refined, and improved our approach along the way. We were first to market and now have a pipeline with more than 10 programs designed to extend our leadership over time. Our leadership is also reflected in our presence at key hepatology, gastroenterology, and endocrinology-focused medical meetings this month, with more than 40 resdifera abstracts being presented. This includes a poster presented at DDW this week where nearly 70% of risdifera prescribers surveyed said risdifera has improved their patient's quality of life and nearly 70% expect to increase their risdifera use over the next six months. Later this month at EASL in Barcelona, we will present additional data that reinforce the breadth of risdifera's effect. That includes a secondary analysis from our Maestro NASH and NAFL D1 trials showing that risdifera reduced LP little a and LDLC in patients with MASH, supporting its potential to reduce cardiovascular risk independent of baseline statin use, along with two real-world data sets that demonstrate ResDiffers' benefit in everyday clinical practice. We believe evidence generation is a strategic advantage for Madrigal. The more we can show prescribers and payers about ResDiffers' performance across clinically relevant endpoints, the more it's solidified as the foundational therapy. Everything we've discussed so far speaks to the strength of risdifera in F2F3 MASH, but there is another significant opportunity ahead of us in well-compensated MASH cirrhosis, or F4C, as noted on slide 10. It's an untapped market with no approved therapies and a much higher urgency to treat. We believe F4C could double risdifera's opportunity with approximately 245,000 patients under specialist care in the U.S. We have an event-driven outcomes trial underway in F4C that, if positive, is expected to support expansion into this indication, as well as support full approval across F2 to F4C. So, before I turn it over to Dave to talk about our pipeline, let me reiterate how rare an opportunity Madrigal has. We were first to launch, we rapidly achieved blockbuster status, and we are still at the very beginning of the development of this market. It's hard to find a comparable opportunity in the industry where the fundamentals are this attractive. And from that position of strength, we are now investing in the next wave of innovation to extend our leadership and define the future of MASH. With that, I'll turn it over to Dave.

Thanks a lot, Bill. Our objective at R&D is straightforward. deliver the industry-leading pipeline in MASH to make better therapies for patients with ResDifera as the foundation. As shown on slide 11, we're doing that through targeted business development and smart clinical execution, leveraging the expertise of an R&D team that pioneered modern MASH drug development. Our strategy has four goals. First, deliver outcomes data and full approval for ResDifera from F2 through F4C. Second, advance complementary mechanisms for combination with risdifera to deliver the best efficacy across the MASH spectrum. Third, remain modality agnostic with development of the best combination regimens as our strategic aim. The recent addition of siRNA assets to our pipeline underscores that approach. And fourth, leverage our experience to design smarter, more informative clinical trials and use capital efficiently. taking more shots on goal, and advancing only programs that serve patients' needs more effectively. The first pillar of this strategy is delivering outcomes data in F4C on slide 12. Our confidence in the Maestro NASH outcomes trial is informed by the two-year open-label experience in 122 F4C patients from our Maestro NAFL D1 trial. Those data are best understood in the context of how NASH progresses to cirrhosis. The critical inflection point in this process is the development of clinically significant portal hypertension, or CSPH. It marks the transition from well-compensated disease towards decompensation, when the most serious complications begin to occur. The literature is clear that patients with CSPH have meaningfully higher rates of liver-related events, and reducing CSPH risk lowers those event rates. That's why the two-year data are so important. 65% of patients with CFPH at baseline shifted into lower risk categories by year two. We also saw favorable movement in other biomarkers, including liver stiffness and fibrosis-related measures. Taken together, these results support risdiferous potential in F4C and reinforce confidence in our event-driven outcomes trial. The second pillar of our R&D strategy is advancing combination therapies anchored by ResDifera, which we know works broadly across patient subtypes. Slide 13 highlights our newest addition, ARO PMPLA-3, a clinical stage SIRNA that we recently in-licensed from Arrowhead. We're especially excited about this asset for a couple of reasons. One, PMPLA-3 is a well-understood and known target for MASH based on extensive epidemiological and genome-wide association studies. Two, this is a clinical stage asset that has completed phase one studies. And three, we know risdifera works well across all patient subtypes, including PMPLA3, so a combo including risdifera and this asset has a potential for improved efficacy in a subset of patients that are especially vulnerable due to their genetics. The PMPLA3 mutation is particularly prevalent among Hispanic patients. Compared to those with wild-type PMPLA3, Mass LD patients homozygous for the I148M mutation of PMPLA3 have a two-fold higher risk of liver-related events. Approximately 30% of F2, F3 MASH patients are homozygous carriers of the PMPLA3 mutation, making it a meaningful target for our development efforts. This asset has completed phase one studies and demonstrated two important things. First, it's selectively effective in the genetically defined population of PMPLA3 homozygotes. Second, after a single dose, it reduced liver fat by up to 46% at 12 weeks at the highest dose. We know from Maestro Nash that greater reductions in MRI PDFF are associated with better fibrosis reductions with risdifera. So the goal here is straightforward. Combine a foundational therapy, risdifera, that works broadly with a targeted agent that may move more patients into a high-response category and potentially improve antifibrotic efficacy with a genetically tailored approach. Stepping back on slide 14, our pipeline now includes more than 10 programs. ResDifera continues in two phase three outcomes-based trials. First, our F4C study, which is an event-driven trial that we expect to read out in 2027. And second, the F2F3 study, which is primarily histology-driven with data expected in 2028. These trials would make ResDifera the first fully approved drug with outcomes data, well ahead of other competitors. Moving down the pipeline for a Virgostat or DGAT2 inhibitor, the drug-drug interaction study with resmedirum remains on track to begin in the fourth quarter of this year, and we expect to initiate a Phase II combination study in 2027 following regulatory discussions. For MGL2086, our oral GLP-1, the Phase I single ascending dose study remains on track to initiate later this quarter. For ARO PMPLA-3, our next step will be to engage with regulatory authorities on a phase two combination trial. And our six SIRNA targets are progressing at various stages of preclinical development. Our approach is consistent. We're building around a foundational therapy and prioritizing mechanisms that we believe are complementary, mechanistically sound, and capable of improving outcomes either broadly across the population or in important patient subgroups. Our goal is to ensure Madrigal is engaging with the community and driving the science, so we are delivering meaningful advances for patients. With Rosifra's long-term patent protection, we have the runway to invest, innovate, and define the future of MASH care. With that, I'll hand it over to Marty.

Thank you, Dave. Turning to slide 15 and a summary of our financials. First quarter, 2026 net sales totaled $311.3 million, up 127% year over year. We're off to a strong start in 2026. As we discussed on the last call, our results reflect the typical Q1 effect due to benefit plan changes and insurance re-verifications, plus a step up in growth to net related to our commercial contracting efforts for first line access. The team did an excellent job managing all the moving parts in the quarter. We were able to steadily add patients and our growth to net came in better than we anticipated. We now expect our gross to net discount to be in the mid to high 30s for the rest of 2026. Looking ahead, the fundamentals of the business are strong, and as Bill discussed, Q2 is off to a great start. For the rest of 2026, we expect to steadily add patience and generate robust net sales growth. Moving to operating expenses, which include a total of $34 million of non-cash stock-based compensation expense in the quarter. Cost of sales for the first quarter of 2026 was $26.8 million compared to $4.5 million in the prior year period. Cost of sales at this point primarily reflects royalties owed to Roche. R&D expenses for the first quarter of 2026 were $108.7 million compared to $44.2 million in the prior year period. The increase was primarily due to one-time upfront business development expenses of $54.3 million. As a reminder, the $25 million upfront payments and related expenses for ARO PMP LA-3 will be recorded in the second quarter. SG&A expenses for the first quarter of 2026 were $268.5 million compared to $167.9 million in the prior year period. The increase was primarily due to continued investment in commercial activities for RISDFRA, including headcount for the endocrinology field force expansion that occurred in the fourth quarter of 2025, as well as marketing efforts, including our DTC campaign. Looking ahead, we expect full year 2026 R&D expenses to be roughly the same as 2025 and which is inclusive of the one-time upfront payments we've announced for strategic business development investments in both periods. We expect full-year 2026 SG&A expenses to increase compared to 2025 with the annualization of the end of Salesforce as we continue to support the launch of ResDifera and build the foundation for expected long-term growth. This includes some choppiness with higher Q2 SG&A expenses in 2026 due to timing of certain marketing expenses, including DTC, then studies for the rest of the year. Net loss for the first quarter of 2026 was $94.4 million compared to $73.2 million for the prior year period. Net loss for the first quarter was inclusive of one-time upfront business development expenses of $54.3 million. While our focus remains on supporting our top line growth and building our pipeline, we are also preparing for profitability. Turning to our balance sheet, we ended the first quarter of 2026 with $817.9 million in cash, cash equivalents, restricted cash, and marketable securities compared to $988.6 million at the end of 2025. The balance reflects several quarter-specific uses of cash, including one-time upfront business development payments and timing of API purchases to support future RISDFRA manufacturing. With a strong cash position, we continue to be well-resourced to support the ongoing launch of RISDFRA and the advancement of multiple pipeline programs and continued business development. So to close, slide 16 captures what we've discussed this morning. ResDiffer continues to deliver incredible commercial performance with a trailing 12-month net sales now exceeding $1.1 billion, and demand remains strong with patient growth more than doubling since Q1 2025. We are leading in a market that is still in the early stages of development that has already expanded nearly 50% in the last two years. This reinforces both the scale and the opportunity and the runway that remains ahead of us. We also see significant upside beyond F2, F3, with F4C representing an important next phase of growth and an indication where there are currently no approved therapies. And importantly, we're not standing still. We're investing in our pipeline of more than 10 programs designed to build on RISDifference Foundation and extend our leadership across the full spectrum of MASH. Taken together, this is a company built for sustainable value creation, We believe Madrigal is exceptionally well-positioned in 2026 and beyond. I'll now turn the call back over to Tina and open the Q&A session. Thanks, Marty.

Let's move into the Q&A portion of the call. Brilla, please go ahead and provide instructions for the Q&A session.

Thank you. We will now open the lines for questions. To open your line, please press the star followed by the number one on your telephone keypad to be added to the queue on the call. Our first question comes from the line of Prakhar Agarwal with Kantar Pitiraltiskehet.

Hi, congrats on the quarter, and thank you so much for taking my questions. Maybe just on ResDefra, what are you seeing on the 2Q trend so far and the expectations for patient ads for the rest of the year? And as a follow-up, now that Vigovi has been on the market for MASH for a few quarters, what are you seeing on the impact to ResDefra in the market, if any? Thank you.

Thanks for the question, Prakash. Look, as we take a look at the Q2 trends, I mean, stepping, first of all, they're great. So I'll get to that in a second. Context, over 42,250 patients on drug as we exit Q1, two and a half times growth over last year at this time, really impressive. And in the context of we are at the very beginning of a market, we fully expect this is going to be a mega blockbuster, 1.1 billion in the last four quarters. We're in a really great space. So to put in perspective, how are things going in the second quarter? We're off to a strong start. We're carrying that momentum. We're steadily adding patients. Maybe it's best to put it in the context of Wagovi that you mentioned as well. You know, Wagovi's had now three quarters of launch that we've been out there. It's being used, but certainly not to the detriment of ResDifera. We continue to steadily add patients through it. You know, you have to think, Wagovi and GLP-1s are really becoming a background therapy. In fact, most of the doctors that we talk to say they're already on a GLP-1 when they come into the office. So they're coming into the office on a GLP-1, and they have F2F3 mash. So our profile looks really, really strong there. So it's out there. We're seeing them, but we're not seeing any real difference. And maybe as a final proof point, last quarter I talked about us having our best MBRX week in the last quarter. And as we exit April, it's been our best MBRX month since launch. So, you know, we're really excited about the rest of the year. We'll be steadily adding patients, just as we've said in the beginning of the launch. Thanks, Prakhar.

Thanks, Prakhar. Next question, please. The next question comes from the line of Ash Verma with UBS. Please go ahead.

Hi, congrats on the quarter and thanks for taking a question. So maybe just, can you talk about the breadth of prescribing right now and how do you think that could evolve? Is it fair to assume that welcome to prescribing right now is coming from gastroenterologists and when do you start to get traction from hepatologists, which is kind of like a smaller patient audience? And then endos, when does that become a big source? And then on the 1Q, new patient ad dynamic. So it seems like roughly 6,000 new patients that you added, which is lower than some of the recent quarters. We saw this dynamic in the first quarter of last year as well when you had 5,000 and then kind of doubled from there. So is it primarily the new year insurance deductible reset that's driving that? And how does the rest of the year shake out on a new patient ad dynamic?

Thanks. Great. Great, thanks, Ash. Let me start there. So the Q1 adds, again, it falls into our steadily adding patients, and it is a Q1 effect. That's really it. I mean, when you think about the Q1 effect, the Q1 effect applies to virtually 100% of your patients on therapy. And remember, what we are presenting is the number of patients that are on drug on the last day of the quarter, right? So you have patients that are coming in the top and then the patients that are on drug. So that's the Q1 effect that you have since everyone's exposed to it. So as I said in the last question, we expect to steadily add patients throughout the rest of the year. Q2 is off to a strong start. Maybe the discussion then about breadth of prescriber. We have over 10,000 prescribers now. which is plenty of breadth for us, though we continue to add new prescribers every day. When you think about just the numbers of physicians, gastroenterologists outnumber hepatologists 10 to 1. So you're going to see the majority of prescriptions that are flowing through them. Hepatologists, you know, they were out of the gates a little faster. They treated the disease longer, probably a little bit better prepared. In fact, we know they were better prepared. you know, we had to wire the system practice by practice with the others. Endocrinology, they're just coming on board. It was really fourth quarter that we started our efforts there. And, you know, you have to think about endocrinologists as being where gastroenterologists were about two and a half years ago, right? So it's something that they've been seeing some match, but they haven't really thought about it. Now they're starting to more actively look And, you know, we're wiring the system for each of those endocrinologists as well. So we see them as, in the future, being a really productive specialty for us. You know, as I said, they see all these patients on background GLP-1s, yet they're still seeing F2, F3, MASH. So we think that, in the future, that becomes a valuable specialty for us as well. Thanks.

Great.

Next question, please. The next question comes from the line of Kripa Dwarakunda with TruViz Securities. Please go ahead.

Hey, guys. Thank you so much for taking my question. I had a question about patient mix. I think you just mentioned, you know, that GLPs are likely going to be backbone therapy, but you had also previously talked about how 25% of respiratory patients are on a combo. Can you talk about how that has evolved over the last few quarters, and also, you know, some of the KOL tracts, not all, but that we've done, say that they prefer ResDiffer for F2 would be helpful to understand the F2, F3 split that you are seeing in the real world. Thank you.

Yeah. Thanks for the question. And you're right. We still continue to see, you know, 25 plus percent of patients that are on ResDiffer also on a GLP-1 and over 50 percent have been previously exposed So, you know, we expect that trend to continue. We expect that most patients that are going to come in in the future will have had experience with the GLP-1. So, you know, those dynamics seem to be in place. Now, your second question was F2-F3 split. It's about 50-50 still. You know, and I know some people have thought, well, wouldn't prescribers want to clear the F3s first? And I think it has to do with you have a patient sitting in front of you that's one to two steps away from cirrhosis. Are you going to wait to treat an F2 not knowing how fast they're going to progress to F3 or to cirrhosis? And no, you're not going to wait. You're going to make the call on that patient what you think their risk factors are and initiate therapy. So we still see, and that's been pretty consistent since the start of launch, about a 50-50 split between F2 and F3.

Great. Thanks, Kripa. Next question, please.

The next question comes from the line. Please go ahead.

Hi, guys. Thanks for taking the question. I have a more sort of high-level question on diagnostic growth as you see it, Bill, through the rest of the year and next year. Do you think that you could be that it could be worthwhile to spend more on disease awareness now that competitive diagnostic awareness programs may be slowing with the maturity of the GLP-1 launches in MASH, and how you think about maybe stepping up SG&A to support top-line growth versus clinical development versus your approach to profitability. And then if you have some client questions coming in on how you think about estimates for the full year, which still sit at 1.48, I think, but this change in gross to net. Thanks.

Okay, so let me start off with on the diagnostic growth question, Ritu. Thanks for the question. So, look, I think the proof is in the market sizing that we've seen. In just two years, the market grew almost 50% from 315,000 addressable patients to 460,000 addressable patients. And we think that, and remember, diagnosis went from 1.5 to 1.9 million. What you're seeing there is that there are more patients that are being diagnosed. And most importantly, they're getting into the specialist offices that we're calling on. so that there's a potential for them to get a RISDiffer prescription. So I think our efforts, and this is where we believe Novo's helped as well by creating more awareness of the disease. So I think that we've already seen the proof point that by having a product, by having more than one company, the market's growing. Now, specifically on diagnostics, You know, what we're also seeing is more and more interest by practices purchasing NITs and being able to do point-of-care diagnosis. And that's another good trend that we expect to continue over time. So I think that will also facilitate staging of patients and then the ability to treat, and then most importantly, to see how the patients are doing over time. So maybe what I'll do now is turn it over to Marty to answer the rest of the questions.

Yeah, thanks, Ritu. And I think you had a number of questions embedded in there, so I'll pick through them, starting with SG&A. Yeah, so clearly we want to support this, what we think is going to be a mega blockbuster brand through the efforts of our sales force and our commercial efforts, including marketing campaign and DTC, and we talked about that. And we talked about SG&A for the rest of the year. You're going to see an increase in Q2. and then studies for the rest of the year. But absolutely, we want to be in front of the growth and support the brand as best we can. And then that leads to a question about growth to net for the year as well. So how did that look? So growth to net, as we said, we believe we have some favorability going into the rest of the year. We now have better clarity after we got through Q2. Remember, this is a new brand, so we get clarity every quarter. This was a Q1 quarter that we look at what the various components are. And I would say the team did an excellent job managing gross to net for the quarter and set us up for the rest of the year. So we believe we'll be in the mid to high 30s for the rest of the year. And I would say for Q1, we were even a little bit more favorable to that, that we're in good shape on the gross to net side. So that leads us to now SG&A and Gross to Net, what we think for the full year. So the full year, yes, we are good with the consensus that you mentioned for the full year. That sounds good. And we're also looking good for Q2 with the same analogy. So we seem to be right on track and feel good about the rest of the year. And then the last point that you brought up was about profitability. You know, as we look at it, profitability, we believe, is inevitable. We're going to be a profitable company, and that's why we're preparing for profitability now. If we look at 2026 specifically, we're not going to be profitable in 2026. And, you know, specifically in Q2 with the PMPLA3 acquisition, you know, we will not be profitable in Q2 either. Could there be other quarters where we tip into profitability? Perhaps, but it's really going to depend on our one-time spend. But beyond 2026, without specifics, profitability is inevitable, and we're planning for that. Great. Thanks, Margie. Next question, please.

The next question comes from the line of Yasmin Rahimi with Piper Sandler. Please go ahead.

Congrats, team, to a strong quarter, and also really great news. I'm hearing gross than that to go down as one of our favorite questions. But let's maybe transition to maestro outcome. I mean, we're almost halfway through the year. Would love to understand at what point do you really get visibility on how the events are tracking and fine-tuning guidance and sort of also helping understand expectations. I know you take blinded looks at the event rates. You've been consistent saying they're tracking. Would love to kind of get sort of color in how you're thinking about but we could learn more around micro outcome and upcoming between now and sort of year end to kind of prep us for a very important pipeline expansion opportunity.

Great. Yes, thank you very much for the question. And, you know, it represents a huge opportunity for us. This is a really high-end met need need. Dave, could I pass it over to you to answer the specific questions, please?

Yeah, sure. Yeah, thanks, Yazi. Yeah, I mean, obviously, a critical study for us. And as we said, we're seeing events track in range of our expectations. And we continue to project the trial to deliver in 2027. You know, with these, you know, smaller size trials, precision is sometimes difficult. And we want to give you, you know, a good estimate of when to expect that. And so when we have that Precision will provide you an update. But right now, we're still saying 27. Events are tracking, and we're excited to see the results.

Great. Thanks, Yaz. Next question, please.

The next question comes from Ellie Merle with Barclays. Please go ahead.

Hey, guys. Good morning. Thanks for taking the question. Bill, you alluded to this with patients coming in already on GLP-1, but can you elaborate on what you're seeing in terms of combination use with GLP-1, specifically maybe the latest in terms of the proportion of ResDifera patients also on GLP-1. And then, I guess, what does payer coverage for combination look like since we got the formal label for MASH? Thanks.

Great. Thanks, Ellie. We're still seeing around 25% of patients that are concomitantly on GLP-1 with ResDifera. And, you know, we think that's going to increase. That's our belief is that it's just inevitable. I mean, there's just really so many patients that are on a GLP-1. Regarding access, we have great access, I have to say. I mean, since day one of launch, we have had, I would call it even exceptional access. And as we moved into 2026 with the contracting that we did, we maintained that great access. You know, I think it's like everything else. It's a subtlety. You can use a GLP-1 in combination with ResDifera if the GLP-1 is prescribed for one of the other indications that a GLP-1 is indicated in. Now, what we haven't seen and don't have good data on is just if there's any that have a double MASH prescription. We don't think payers would allow that, but they're certainly allowing a GLP-1 to be used for another indication and then ResDiffer being used for MASH. And I think, you know, from what we're hearing more and more from prescribers is that having the combination makes sense in a lot of ways, and certainly we believe that based upon us going out and getting an oral GLP-1 last year, we think that it is a combination that could make sense. If you recall, if we saw greater than 5% weight loss in patients that were not on a GLP-1 in our Maestro NASH trial, that it led to an improved effect on fibrosis for resiferase. So we're going to pharmacologically induce that, so to speak, with the GLP-1. That's the hope, and that's the study that, as Dave said, or we said previously, we have that phase one study of our oral GLP-1 kicking off in the next weeks.

Great. Thanks, Ellie. Next question, please.

The next question comes from Thomas Smith with Learing Partners. Please go ahead.

Hey, guys. Good morning. Congrats on the quarter, and thanks for taking our questions. Your pipeline's extended substantially here over the last 12 months, multiple CERNA programs, the oral GLIP, the DGAT2 inhibitor. Sounds like a lot of optionality, but can you just provide some updated thoughts on the clinical strategy and positioning across these doublet or triplet combos? Maybe the criteria you're going to use to advance these programs beyond proof of concept. And then can you also comment on your appetite for additional deals in BD following this string of recent deals? Thanks so much.

Thanks, Tom. Let me just provide maybe some context about how we're thinking about our pipeline, and then, Dave, if you could jump into the specifics. It goes back to this opportunity that we have. We're at the very beginning of the treatment of a disease that's had no therapies and is an incredibly high unmet need, number one cause of liver transplants for women in America, number two for men. We have the foundational therapy, and we expect that this market is really set up for decades of growth. We're at the front end with a foundational therapy that is really effective and we're seeing that in the real world. Feedback has just been truly impressive from what we're hearing from prescribers that are using the product and from patients as well. So when you've got this opportunity with a product that's already a blockbuster, to think about long-term leadership, you'd take that opportunity. Based on the success of ResDifera and the future dynamics of the market and the fact that so many people have decided to step out of the market, Pfizer steps out, J&J steps out, BMS steps out, et cetera, et cetera, based on failures. With some of them, Pfizer actually just, they just can't bring it, they couldn't bring it forward. So, you know, it was better in our hands. So what we've done is we've gone out and looked for mechanisms of action that we think make sense in combination with ResDifera. Those mechanisms may not have been strong enough, good enough to compete as a monotherapy. But if we can put them together with ResDifera, and get even more efficacy across the whole population or a sub-population, that is a step to long-term leadership, either as a fixed-dose combination if it's an oral or as a regimen where you've got a once-a-day pill and then every three to six-month siRNA, just like the deal that we did with Arrowhead, which we think is fantastic. We've also been able to do this in an incredibly capital-efficient manner. For under $300 million, we have assembled a leading pipeline. You just don't see that. I haven't seen that in any other therapeutic area. And we, because of our leadership position, I think, have been able to access opportunities that others probably wouldn't make sense for. So that's how we're thinking about it. And yes, we've done a really good amount of BD in the last 10 months now, I guess it is. What's our appetite going forward? Look, we're still constantly looking at everything out there that is potential in MASH. And where we see an opportunity that could make sense with the mechanism that we like and we don't have, we would look at that opportunity and bring it in. But again, Think about how we've done it already, which is extremely efficiently, and we will keep that discipline going forward. So maybe with that, I'll just pass it over to Dave to comment on any specifics.

Yeah, that's a great summary, Bill. I mean, I think that, you know, one way to think about it, as Bill was highlighting, is we have the foundational therapy, right? So we have resdifera to to look for combination partners to improve efficacy and improve outcomes for patients. So that's the idea. And our approach has been we look for validated targets with complementary biology and we're modality agnostic. So that's how we built the pipeline. We have small molecules. We have siRNAs. Anything that could potentially work more effectively with resdifera, that's great. Now, it's important to start off with resdifera also sets a high bar. Resdifera works very well across all subpopulations, as we've seen from Maestro Nash. So, you know, our bar for bringing products forward when we conduct Phase II studies is that they have to be meaningfully, you know, they have to deliver a potential meaningful benefit to patients at the end of Phase II. But our decisions will all be data-driven, and we've talked about a couple of different examples where we talk about, for example, PNPLA-3, where there's a very specific patient population that we're targeting. So patients who are homozygous for I-148M, PNPLA-3 mutations, again, highly prevalent mutation, highly burdensome in terms of clinical outcome. But we believe that with risdifera as the foundation, adding PNPLA-3 may provide an even greater benefit for those patients. And as Bill was just highlighting for GLP-1, It's a different strategy, right? So that's to produce modest but important weight loss for patients that can drive res difera's anti-fibrotic effect. So what we're looking for in early clinical development in these sort of initial combination studies are primarily will be biomarkers like changes in MRI, PDFF, but also other biomarkers of fibrosis and other blood-based and imaging biomarkers to help us make decisions about what to move forward into phase three. But that phase three transition has to be underpinned by data that leads us to believe that these products are gonna be meaningful additions to the therapeutic armamentarium. And in every case, we believe that these programs all have that potential.

And just maybe put a finer point on it as well. If they show a benefit, move them forward fast. If they don't, kill them fast. And that is a little bit of a different, again, another difference with Madrigal. Because we're not beholden to a single pipeline asset performing for the company to actually be something, we can be ruthless in our prosecution of these trials. And we will. If it works, great. If it doesn't, I mean, great. We move on because we're already starting with the product that we have, which is ResDiffer, which is the enabler of this strategy.

So thanks for the question. Good question, Tom. Next question, please, operator.

The next question comes from Akash Jowari with Jeffries. Please go ahead.

Hey, this is Manoj on for Agas. Just one on from our end. So master outcome baseline poster show around 150K mean platelet count in the population. While this seems lower than the around 180K seen in the symmetry phase two, it still seems to be higher than the FOC, the oily data you were showing, which was, I think, around 120K. So in the oily data, you saw around two to three percentage of annualized even, but given this outcome, that baseline population platelet count is above that OLA data, do you expect to see some difference in the event rate there based on this platelet count difference, mean platelet count difference?

Great. Thanks for the question. Dave, I'm going to pass that over to you.

You got it. Yeah, so you're highlighting a really important point, which is in these F4C trials, you have to ensure that that you enroll the right patient population within the F4C population. F4C is not a monolithic disease, right? So patients who've just transitioned, for example, from F3 to F4, it might take them a while to progress to decompensation, whereas patients who have CSPH, clinically significant portal hypertension, are right on the cusp of having a decompensation event And those are the patients that are more likely to drive events in the near term. So as you're highlighting, one way that you measure clinically significant portal hypertension is including platelet counts along with liver stiffness measurements using the Bovino criteria. And as we've talked about before, both in our open label extension study and in Meister outcomes, we've allowed patients with low platelet counts, so greater than or equal to 70,000K, to enroll in the study. So there are patients with quite low platelet counts, and that's not uniform across all Phase III F4C protocols. So we believe that our outcomes trial is enriched exactly the right way, so using a variety of criteria to enrich the population to make sure that we see the outcomes as we are, and yet have an opportunity to bring these patients back from the brink of being on the cusp of decompensation and bring them into a less urgent stage of their disease. So, you know, I think on that basis, if you look across the open label extension study and maestro outcomes, The populations are broadly comparable. There are going to be some differences just because the sample sizes are very different, but the inclusion criteria are very similar, and we are seeing, you know, rates of CSPH in both studies that give us confidence. So I think I'll leave it there.

Right. Appreciate it. Thanks, Dave. Operator, next question, please.

The next question comes from Michael DeFiore with Evercore ISI. Please go ahead.

Hi, guys. Thanks so much for taking my questions, and congrats on all the progress. Two for me. First, on PNP LA3, that was previously partnered and later returned to Arrowhead. And without asking you to speak for J&J, could you walk us through what Madrigal saw in the asset that made it attractive today, and what diligence gave you confidence in the program? And then I have a follow-up.

Great. You know, look, maybe just a general statement, and I started with that, then I'll pass it to Dave. A lot of companies, big pharma have opted out of MASH. They either had failures or they thought they have a single asset, maybe it's not enough, which is a little bit different than us. But Dave, I'll pass it over to you to ask the specific question about why we're so excited about this asset.

Yeah, look, I think, I mean, you touched on it before, Bill. I mean, I think, you know, starting with the fact that we have ResDifera, You know, we think in our hands, adding a PNPLA-3 targeted agent could deliver even better efficacy to the patients who are homozygous. So, again, coming back to the strategy, so validated targets, complementary biology to risifera, and being modality agnostic. So, why did this asset sort of fit into this? So, well, clearly, it's a validated genetic target. PNPLA-3 is a validated genetic target. clearly linked to more rapid and progression of disease, of MASH, and emergence of liver-related events in patients who are homozygous versus those who are wild-type. And, you know, I think, second, it's a proven modality. So, siRNA, you know, as As we've seen, you know, with other products getting to the market, it's a safe modality that you can deliver once every three to six, even up to 12 months. So a highly attractive modality with great tolerability. And then last, there are clinical data, right? So we had, you know, we had phase one data in patients where we could see reductions of liver fat. So we had a proof of concept in phase one. And as we've seen, you know, with the MaestroNash data with ResDifera, if you can reduce more liver fat, we can see more efficacy with ResMetarom. So, again, the complementarity of these two mechanisms was particularly compelling as well. So I think for all those reasons, you know, we bring in a clinical stage asset, advance our pipeline, and have a potential offering for patients who really need a therapy.

Yeah, and I mean, look, it was a 46% reduction in liver fat. So, I mean, that's pretty impressive efficacy from our perspective. And, you know, let's see what happens when you put it in combination. I think it's a really exciting question to ask. And look, it's been through phase one, right? You know, this is an acceleration of our siRNA efforts.

Great. Thanks, Mike. Operator, next question, please.

The next question comes from Andy Chen with World Research. Please go ahead.

Hey, this is Brandon for Andy, and thanks for taking the question. We're curious to know if you can rank order the different NASH combos that you have. Which one are you most excited about clinically? Thank you.

Thanks for the question. You know, I'll pass it over today. My view is it's whichever one works the best is going to be the one that we like the best or those that work the best. But, Dave, how are you thinking about it? Great.

Right. Think amongst our children. I mean, you know, I think there, look, we brought them in, we brought each of these assets in for the reasons that we've talked about, because they all have the potential to significantly move the needle on efficacy for a subpopulation or within the broader group. You know, the decision is about which to move forward into phase three programs and ultimately to registration depends on the combination data. So as we've outlined in You know, we have, because we're focused in MASH and we have experience in this field, a lot of experience running clinical trials in MASH, we know the sites well, we know how to run the trials, so we're going to be able to be efficient, run these studies, and deliver the data that helps us make that decision. But as I said, the data have to be meaningfully different. So for PMPLA-3, like Bill said, 46% reduction in MRI-PDFF is great, combined with ResDifera, if that's even more, we push more patients into that super responder category, amazing. We're going to bring that program into phase three. And that's true for all of these programs. So it's really proof, you know, proof will come from phase two and we'll move the programs forward in a way that's going to make sense to build a pipeline and to deliver value to patients.

Great. Thanks, Dave. Operator, next question, please.

The next question comes from John Wallaban with Citizens. Please go ahead.

Hey, thanks for taking the question and congrats on the progress. Bill, you made a comment about, I think, a path to peak sales, and I'm wondering if you could talk a little bit about what that path looks like in terms of timing, how long you get there, and how big you think RISDEPRA could be down the road.

Thanks, John. You noticed. Look, I think that... in our belief this is going to be a mega blockbuster. How do we get there? We continue to do what we're doing. We have the diagnosis rates increasing. We have more patients get on drugs. We steadily add patients, and we build our path to peak sales. I think it's pretty straightforward. We just continue to do the hard work we're doing. There's plenty of patients. The market's growing. Penetration rate is low. Diagnosis rate at the moment is low. All of these things are increasing. So there's literally years and years and years ahead of this market expanding. And, you know, as I said earlier, as more companies come in, it actually helps us because it drives market expansion. You know, our initial focus was always on that, 315,000, just who was sitting in those prescribers' offices at the moment. Fortunately, now we even have more potential with the advent of other companies coming in and driving diagnosis, et cetera. So keep doing what we're doing, steadily add, and we'll find our path to peak.

Great. Thanks, John. Operator, we have time for one more question, please.

And the next question comes from William Wood with B Riley Securities. Please go ahead.

Hi. Thanks for taking our questions, and congrats on a very nice quarter. Just thinking about in terms of your pipeline, as you said, you've got about 10 pipeline assets as is. You know, should we expect any more add-ons to your pipeline? You know, and if so, what might you be looking for, whether it's more oral options, more SIRNAs, or maybe something that we're not really discussing here? And then also in terms of just sort of In terms of that go, no-go situation, I was curious if any projects that you've sort of brought on or been developing internally have sort of hit that threshold that you've already called and maybe speak to anything that, you know, that might have changed where you're looking in the future or if you're pretty content with what you've got and now you're just looking to execute. Thank you.

William, thank you very much for the question. You know, look, we have assembled, I think, you know, the leading pipeline in masks. and we've done it for less than $300 million. Again, as I said, it says a few things. It says a lot of people still aren't interested in MASH, which is great because we are, and we're in a better position to lead the innovation based on our ability to use ResDiffer as a foundational backbone therapy. So, yeah, we're still looking. Clearly, you know, we've taken quite a bit off the table for us to – pursue but it would be very mechanistic driven is there something that we think looks particularly interesting there's still you know I would say a couple of mechanisms out there which would look which look interesting then the question becomes finding one and finding one that's transactable so you know expect that there may be additional certainly we'd like to you know kind of round out the the pipeline, if you will, with some remaining mechanisms. But we're a big way through it now. Efforts are really focused towards now getting these in the clinic, generating data, and being able to make decisions. So that's how we're thinking about it. But it's really, again, in less than a year's time to have come from a single asset company that has an incredibly promising future, growing into a mega blockbuster, to now, because of that success, be able to build that next stage of leadership, which we think is really long-term focused.

Great. Thanks, Bill. And thank you, Brilla, and thank you all for your time and interest today. This now concludes our call. A replay of this webcast will be available on our website in about two hours. Thanks for joining us.

Ladies and gentlemen, thank you for your participation in today's conference. You may now disconnect. Have a wonderful day.