SCHEDULE: Madrigal Pharma Director Updates 7.8% Stake

Sentiment:

Beneficial Ownership Update


Dr. Paul A. Friedman, a director at Madrigal Pharmaceuticals, Inc., filed an amended Schedule 13D disclosing a 7.8% beneficial ownership stake and recent stock transactions.

Summary

  • Dr. Paul A. Friedman, a director of Madrigal Pharmaceuticals, Inc., beneficially owns 1,814,831 shares of Common Stock, representing 7.8% of the class.
  • This ownership includes shares held directly by Dr. Friedman, his spouse, and shares subject to exercisable options and vesting restricted stock units within 60 days of December 10, 2025.
  • Beneficial ownership also includes shares held of record by SQN, LLC, where Dr. Friedman is a managing member and may be deemed to share voting and investment power.
  • Dr. Friedman disclaims beneficial ownership of Common Stock owned by SQN, LLC and his spouse.
  • The filing updates a previous Schedule 13D from August 1, 2016, and October 17, 2019.
  • The aggregate number of shares beneficially owned is based on 22,711,420 shares outstanding as of October 30, 2025.
  • Dr. Friedman no longer serves as Chairman of the Board and Chief Executive Officer but continues as a member of the Board of Directors.

Sentiment

Score: 5

Explanation: Neutral. This is a routine disclosure of insider ownership and transactions, with no explicit positive or negative implications for the company's operational or financial performance. The change in Dr. Friedman's role from CEO/Chairman to just Board member is a factual update.

Future Outlook

NA

Industry Context

NA

Management Changes

RolePrevious PersonNew PersonEffective DateReason
Chairman of the Board and Chief Executive OfficerPaul A. Friedman, M.D.NANAReporting Person no longer serves in these roles, continues as a Board member.

Related Party Transactions

  • Dr. Friedman and his spouse received stock options, restricted stock, and restricted stock unit awards from the Issuer as compensation for their service as an officer and/or member of the Board of Directors.
  • Dr. Friedman and his spouse may receive additional future equity compensation in connection with their service as members of the Board of Directors or, in the case of his spouse, as an employee of the Issuer.

Stakeholder Impact

  • Shareholders: Provides transparency on a director's ownership stake and recent transactions, which can inform investment decisions.
  • Management/Board: Reflects a change in Dr. Friedman's executive role while he remains a director.

Key Dates

DateDescription
2016-08-01Original Statement on Schedule 13D filed with the SEC.
2019-10-17Original Statement on Schedule 13D amended.
2025-10-30Date as of which 22,711,420 shares of Common Stock were outstanding, as reported in the Issuer's Form 10-Q.
2025-11-04Date Issuer filed Quarterly Report on Form 10-Q with the SEC.
2025-12-10Date of event requiring filing of this statement; also date of reported stock sales and charitable gift.
2025-12-12Date of signing of this Amendment No. 2.

Recommendation

hold

The Schedule 13D amendment primarily updates beneficial ownership information for Dr. Paul A. Friedman, a director, and discloses routine insider stock sales and a charitable gift. It also notes his transition from Chairman/CEO to solely a Board member. This filing does not contain new operational or financial data that would warrant a change in investment strategy. The disclosed transactions are typical for insiders and do not suggest a significant shift in company prospects, thus a 'hold' recommendation is appropriate for existing investors.

Keywords

Madrigal Pharmaceuticals, Paul A. Friedman, Schedule 13D, Beneficial Ownership, Insider Trading, Stock Options, Restricted Stock Units, Director, Biotechnology, Pharmaceuticals

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