Dec. 21 Quick Takes: Cash for NASH as Madrigal and Terns raise funds

Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) parlayed Monday’s data for resmetirom in non-alcoholic steatohepatitis (NASH) into more than $300 million in fresh funds. The financing comprises $159 million raised via an at-the-market (ATM) offering, $100 million via a purchase agreement with two existing investors and $50 million via a credit facility with Hercules Capital. Madrigal, whose shares were up 268% on Monday, is planning to submit an NDA for resmetirom in 1H23. 

Capitalizing on investor enthusiasm for liver disease companies this week, Terns Pharmaceuticals Inc. (NASDAQ:TERN) raised $75 million through the sale of 10.4 million shares at $7.25 in a follow-on underwritten by Jefferies, Cowen, UBS, Mizuho and JMP Securities. The price is a 19% discount to Terns’ closing price of $8.95 on Monday, when it proposed the offering after market hours. Terns gained 30% on Monday after Madrigal said its THRB agonist met both primary endpoints in its Phase III NASH study; Terns is also developing a THRB inhibitor to treat NASH. ...