Madrigal Pharmaceuticals Inc., a Montgomery County biopharmaceutical company, is seeking to raise $125 million through a common stock offering that began earlier this week.
The Conshohocken company, is selling 1.5 million shares of common stock at $83 per share, writes John George for Philadelphia Business Journal.
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Madrigal has granted the underwriters a 30-day option to purchase an additional $226,000 shares to cover overallotments. If those options are exercised in full, the value of the stock sale would increase to $143.75 million.
According to documents filed with the Securities and Exchange Commission, the company plans to use the proceeds from the stock sale for “general corporate purposes, including research and development expenditures, clinical trial expenditures, manufacture and supply of drug substance and drug products, acquisitions of new technologies, capital expenditures and working capital.”
Madrigal (NASDAQ:MDGL) is focused on the developing therapies for cardiovascular, metabolic and liver diseases.
Earlier this month, the company saw its stock climb by 88 percent in one day, closing at just over $87 a share, after it released positive mid-stage clinical trials results of MGL-3196 in patients with biopsy-proven NASH. The study showed patients treated with MGL-3196 experienced a clinically relevant liver fat reduction while also demonstrating improvements in liver enzymes, low-density lipoprotein cholesterol, triglycerides and lipoprotein levels when compared with patients receiving a placebo.
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