Form 4: Madrigal Pharmaceuticals Director James Daly Receives Equity Compensation

Madrigal Pharmaceuticals, Inc. director James M. Daly was granted 715 restricted stock units and 1,290 stock options on June 20, 2025, as part of his compensation.

Summary

• James M. Daly, a Director of Madrigal Pharmaceuticals, Inc. (MDGL), reported an acquisition of equity securities.
• On June 20, 2025, Mr. Daly was granted 715 shares of Common Stock in the form of Restricted Stock Units (RSUs) at a price of $0 per share.
• These RSUs are scheduled to vest on the date of the Issuer's annual meeting of stockholders in 2026, contingent upon Mr. Daly's continued service with the Issuer.
• Additionally, on June 20, 2025, Mr. Daly was granted 1,290 Stock Options (Right to Buy) with an exercise price of $285.73 per share.
• These stock options will vest 100% on the date of the Issuer's annual meeting of stockholders in 2026, provided Mr. Daly continues to serve as a director until that date.
• The stock options have an expiration date of June 20, 2035.
• Following these transactions, Mr. Daly beneficially owns 2,627 shares of Common Stock and 1,290 derivative securities (stock options).

Sentiment

Score: 7

Explanation: The filing indicates standard equity compensation for a director, which is generally viewed positively as it aligns management/director interests with shareholders. It does not contain any negative or unexpected information.

Positives

• The grant of restricted stock units and stock options to a director aligns their financial interests with those of the shareholders, encouraging long-term value creation.
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged, systematic approach to equity compensation.

Risks

• The vesting of both the restricted stock units and stock options is contingent upon the reporting person's continued service with the Issuer until the 2026 annual meeting date.

Future Outlook

The equity grants are structured to vest in 2026, aligning the director's incentives with the company's performance over the coming year. The stock options have a long-term expiration date of 2035, providing a sustained incentive.

Industry Context

Equity grants, including restricted stock units and stock options, are a common form of compensation for directors and executives in the biotechnology and pharmaceutical industry. This practice is standard for attracting and retaining talent and aligning their interests with long-term shareholder value.

Comparison to Industry Standards

• The use of RSUs and stock options for director compensation is a standard practice across the biotechnology and pharmaceutical sectors, comparable to compensation structures seen at companies like Regeneron Pharmaceuticals, Inc. or Vertex Pharmaceuticals Incorporated, which frequently utilize equity to incentivize leadership.
• The vesting schedule tied to continued service is typical for such grants, ensuring retention and commitment from board members.

Stakeholder Impact

• Shareholders: The equity grants to Director James M. Daly further align his interests with those of the shareholders, potentially fostering decisions that enhance long-term shareholder value.

Next Steps

• The restricted stock units and stock options are expected to vest on the date of Madrigal Pharmaceuticals' annual meeting of stockholders in 2026, provided James M. Daly continues his service.

Key Dates

Keywords

Madrigal Pharmaceuticals, MDGL, Form 4, Insider Transaction, Restricted Stock Units, Stock Options, Equity Grant, Director Compensation, James M Daly, Rule 10b5-1