The MDGL indicator for NASH partner prospectsI was thinking that the share price of MDGL, the undisputed leader currently in the NASH universe, might be a good indicator in interest in a NASH partnership that THTX is seeking. With this gold standard NASH stock now below $90 after hitting almost $400 several years back, it is clear sentiment around NASH stocks is at quite a low right now. If MDGL was trading close to $400 right now, the prospects for an attractive partnership deal for THTX in NASH would likely be much better. Hopefully that MDGL indicator recovers nicely in the months ahead but if interest is on the wane for MDGL, the ramifications for an attractive NASH partnership for THTX are likely lower too. When there is no excitement around NASH, there are not likely to be any exciting partnerships formed either.
I am sure THTX can get some deal done but one has to wonder what terms they will have to accept. If the partner is carrying the load on the trial costs, then we should not expect upfront cash payments of any size.