Billionaire John Paulson’s 10 Stocks with Huge Upside Potential

8. Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL)

Paulson & Co.’s Stake: $630 million

Number of Hedge Fund Holders: 40

Average Upside Potential as of May 2: 26.03%

Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is a biopharmaceutical company that delivers novel therapeutics for metabolic dysfunction-associated steatohepatitis/MASH in the US. It offers Rezdiffra, which is a liver-directed thyroid hormone receptor beta agonist for treating MASH.

Following its FDA approval in March 2024, Rezdiffra has shown a strong performance in treating F2-F3 MASH in the US market. In its first 12 months, the drug made $317 million in net sales and treated more than 17,000 patients who previously lacked approved treatment options. Q1 2025 reported $137 million in net sales, which was 33% sequentially. The number of patients actively on Rezdiffra grew from 11,800 at the end of Q4 2024 to over 17,000 by the end of Q1 2025.

Notably, 70% of the company’s top 6,000 target prescribers have already prescribed Rezdiffra within the first year of its launch, and ~50% of the total 14,000 target prescribers have done so. Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is concentrating its disease and product education efforts on the 315,000 diagnosed F2-F3 MASH patients currently under the care of its target prescribers, of which only about 5% are currently being treated with Rezdiffra.