Madrigal Pharmaceuticals (NASDAQ: MDGL) may not be a familiar name to many investors, but the consensus of Wall Street analysts expects its shares to rise by 93% within the next 12 months. That's assuming its lead candidate, resmetirom, is approved for sale. The drug is used to treat a liver disease called non-alcoholic steatohepatitis (NASH), also known as metabolic-dysfunction associated steatohepatitis (or MASH).

If everything goes as planned, resmetirom could be approved on March 14 of next year. That means the analysts are on to something. But its shares are still down by 23% over the last five years. Should you still consider buying this stock?

The first thing to recognize about why Wall Street's forecast could be correct is that NASH drugs will have a huge market, and there are currently no players competing for it. The National Institutes of Health (NIH) estimates there could be between 10 million and 42 million people living with NASH today in the U.S.

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Source Fool.com