
Biotech Hedge Fund Extraordinaire Baker Bros. Advisors LP Adds To Its Stake in Madrigal Pharmaceuticals (MDGL): Should You Buy?
📈 Ticker: MDGL 🎶
💰 Price: $391.66 (+3.19%)
📅 As of Aug 20, 2025, 4:00 PM ET
🐉 The Trigger: Baker Bros. Is Back at It
When the Baker Bros. Advisors LP — one of the most legendary biotech hedge funds on Earth — opens their wallet, Wall Street listens. This week, they scooped up even more Madrigal Pharmaceuticals (MDGL) shares:
Filing Date | Trade Date | Insider Name | Title | Trade Type | Price | Qty | Owned | Δ Own | Value |
---|---|---|---|---|---|---|---|---|---|
2025-08-20 | 2025-08-18 | Baker Bros. Advisors LP | Dir | Purchase | $380.58 | +97,065 | 1,947,968 | +5% | +$36.9M |
2025-08-20 | 2025-08-18 | Baker Bros. Advisors LP | Dir | Purchase | $364.04 | +68,618 | 1,859,091 | +4% | +$25.0M |
That’s $62 million in fresh conviction. If biotech were poker, the Bakers just went all-in with another stack of chips.
🎩 Who Are the Baker Bros Anyway?
Founded in 2000 by brothers Felix and Julian Baker, the hedge fund has become the biotech kingmaker.
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Felix: Stanford biologist, PhD in immunology, dabbled in med school.
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Julian: Harvard grad, private equity alum, finance sharp-shooter.
They started managing money for the Tisch family (Loews Corp.), then broke out on their own. The rest is hedge fund lore:
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By 2016, Yale’s endowment had $1.08B with them.
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In 2019, Seagen + BeiGene bets added $1.4B in two weeks.
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In 2023, Pfizer’s $43B buyout of Seagen turned their $8B stake into one of biotech’s greatest trades.
In short: when the Bakers sing, the biotech choir listens. 🎶
📊 Top Baker Bros. Holdings (as of June 30, 2025)
Stock | Company | % of Portfolio | Shares Owned | Value | Avg Buy Price | Price Gain |
---|---|---|---|---|---|---|
ONC | BeiGene Ltd | 20.65% | 8.8M | $2.13B | $129.01 | +139.8% |
INCY | Incyte Corp | 20.30% | 30.74M | $2.09B | $72.02 | +19.7% |
ACAD | Acadia Pharma | 8.97% | 42.9M | $925M | $21.66 | +15.1% |
INSM | Insmed Inc | 7.53% | 7.71M | $776M | $65.49 | +97.7% 🚀 |
SMMT | Summit Therapeutics | 6.96% | 33.7M | $717M | $10.31 | +150.9% 💥 |
MDGL | Madrigal Pharma | 5.80% | 1.98M | $598M | $139.27 | +181.2% 🎉 |
RYTM | Rhythm Pharma | 3.43% | 5.60M | $354M | $24.11 | +309.4% 🤯 |
RVMD | Revolution Medicines | 3.34% | 9.36M | $345M | $29.54 | +22.4% |
Notice something? Madrigal is already a top-10 conviction play.
🏦 Institutional Heavyweights Piling In
It’s not just the Bakers. Practically every Wall Street giant is on the guest list:
Holder | Shares | % Out | Value (USD) | Date |
---|---|---|---|---|
Janus Henderson | 2.19M | 9.87% | $858M | Jun 2025 |
Paulson & Co. | 2.09M | 9.41% | $818M | Jun 2025 |
RTW Investments | 1.99M | 8.98% | $781M | Jun 2025 |
Baker Bros. Advisors | 1.98M | 8.90% | $774M | Jun 2025 |
Vanguard | 1.88M | 8.45% | $735M | Jun 2025 |
Avoro Capital | 1.88M | 8.44% | $734M | Jun 2025 |
BlackRock | 1.44M | 6.48% | $563M | Jun 2025 |
State Street | 690k | 3.11% | $271M | Jun 2025 |
T. Rowe Price | 508k | 2.29% | $199M | Jun 2025 |
UBS | 506k | 2.28% | $198M | Jun 2025 |
👉 Fun fact: Institutional ownership is 116% of float. Translation: hedge funds own more shares than exist thanks to short lending. Wall Street math. 🤷
🔍 For Madrigal Pharmaceuticals (MDGL)'s Institutional Ownership breakdown, see here.
💊 Why Madrigal? All About Rezdiffra
Rezdiffra™ (resmetirom) is Madrigal’s blockbuster drug for nonalcoholic steatohepatitis (NASH) — aka fatty liver disease that got serious.
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Q2 2025 net sales: $212.8M (up from just $14.6M a year ago).
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Patients treated: 23,000+ (up from 17,000 in Q1).
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Patent protection: Now extended to 2045.
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Global expansion: Positive CHMP opinion in Europe.
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Pipeline: Added an oral GLP-1 candidate (yep, entering Ozempic-land).
💸 Cash position: $802M on hand, plus $500M in secured credit.
📉 Net loss: down to $42M from $152M a year ago.
That’s what we call biotech hypergrowth.
📈 Financial Snapshot
Metric | Q2 2025 | Q1 2025 | Q2 2024 |
---|---|---|---|
Rezdiffra Net Sales | $212.8M | $137.3M | $14.6M |
Patients on Drug | 23,000 | 17,000 | ~1,000 |
Operating Expenses | $260M | $222M | $177M |
R&D Expense | $54.1M | $57M | $71.1M |
SG&A Expense | $196.9M | $165M | $105M |
Net Loss | ($42M) | ($46M) | ($152M) |
📊 Revenue up 15x year-over-year, losses shrinking fast. Profitability is peeking around the corner.
👉 Want the full picture? Dive into Madrigal Pharmaceuticals (MDGL)'s financials here.
🚀 Stock Performance & Valuation
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Shares are up 5x in 3 years.
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Trading near their all-time high ($415, Jan 2013).
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Market Cap: $8.7B.
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Price/Sales: 16.2 (yes, rich — but hey, it’s biotech hyper-growth).
The risk/reward looks tasty: a true growth rocket, though turbulence is guaranteed.
⚠️ Risks
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Regulatory: Full FDA approval depends on ongoing trials confirming Rezdiffra’s benefits.
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Competition: Big Pharma circling the NASH space.
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Sector volatility: Biotech stocks can move 20% in a day, sometimes for hardly any reason at all.
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Macro: If markets crash, MDGL may not be spared.
💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.
🎶 Why the Madrigal Sings
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Exploding sales.
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Shrinking losses.
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Patent fortress until 2045.
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Backed by hedge fund legends + Wall Street titans.
A madrigal is a lyrical poem meant to be sung. With Rezdiffra, Madrigal Pharma’s tune is loud, clear, and hitting all the right notes. 🎵
Investor chorus: Start a small position, dollar-cost average, and don’t forget your earplugs for the volatility.
⚠️ Disclaimer
We love music, but this isn’t investment advice. If your biotech stock starts singing madrigals, see a doctor. Or your broker.
We laugh, we analyze, we meme. We just sell jokes and opinions — and yes, we’re billing your sense of humor. 🎪💸
We’re not financial advisors. We’re FUNancial advisors.
Invest at your own risk — preferably with no headphones on 🎧 — always DYOR, hold the FOMO, and don’t invest what you can’t afford to lose.
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