Cartoon of hedge fund managers conducting a biotech orchestra, with Madrigal Pharmaceuticals (MDGL) rocket blasting off.

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.

  • Felix: Stanford biologist, PhD in immunology, dabbled in med school.

  • 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:

  • By 2016, Yale’s endowment had $1.08B with them.

  • In 2019, Seagen + BeiGene bets added $1.4B in two weeks.

  • 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.

  • Q2 2025 net sales: $212.8M (up from just $14.6M a year ago).

  • Patients treated: 23,000+ (up from 17,000 in Q1).

  • Patent protection: Now extended to 2045.

  • Global expansion: Positive CHMP opinion in Europe.

  • 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

  • Shares are up 5x in 3 years.

  • Trading near their all-time high ($415, Jan 2013).

  • Market Cap: $8.7B.

  • 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

  • Regulatory: Full FDA approval depends on ongoing trials confirming Rezdiffra’s benefits.

  • Competition: Big Pharma circling the NASH space.

  • Sector volatility: Biotech stocks can move 20% in a day, sometimes for hardly any reason at all.

  • 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

  • Exploding sales.

  • Shrinking losses.

  • Patent fortress until 2045.

  • 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 memeWe 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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