June 13, 2018 / 4:11 PM / 10 days ago

Madrigal Pharma explores sale: Bloomberg

(Reuters) - Madrigal Pharmaceuticals Inc (MDGL.O) is exploring a sale, Bloomberg reported on Wednesday, citing people familiar with the matter, nearly three weeks after the company reported mid-stage data from its drug to treat non-alcoholic steatohepatitis or NASH.

The company is exploring a sale after receiving takeover interest from drugmakers eying treatments for NASH, the report said.

The deliberations were at an early stage and the company was working with investment bank Centerview Partners Holdings on the potential sale, the Bloomberg report said.

U.S.-based Madrigal saw its stock more than double since it reported the data. Shares of the company, which had a market valuation of $4.31 billion to Tuesday’s close, rose 6.2 percent to $299.09 on Wednesday.

The company did not immediately respond to a request for comment.

Often dubbed the “silent disease” because it frequently goes undiagnosed, NASH has no approved treatment and the lucrative size of the market has led large drugmakers to hunt for deals with smaller companies with promising treatments for the disease.

Reporting by Manas Mishra in Bengaluru; Editing by Maju Samuel

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