Madrigal Pharma’s Director Paul Friedman Buys Low, Sells High — Insider Confidence Amid Volatility?

Insider Activity Spotlight: Madrigal Pharmaceuticals and Paul Friedman

Paul Friedman’s Buying Pulse On January 9, 2026, Paul Friedman purchased 24,520 shares of Madrigal at $15.80, adding to a sizeable 655,540‑share holding. The purchase occurred at a time when the stock was trading near $493, a steep discount to the 52‑week high of $615 and well below the recent 12‑month average. Friedman’s decision to buy at this low may signal confidence in a forthcoming catalyst—perhaps the Phase‑2 license for Ervogastat or a broader rebound in the biotech space. The trade coincides with a muted market sentiment score of –7 and a high buzz of 385 %, suggesting that retail chatter is intense but still largely negative, perhaps reflecting concerns over Madrigal’s negative P/E and ongoing losses.

Heavy Selling by the Same Insider While the buy stands out, Friedman’s transaction history on the same day is dominated by a flurry of sales. Over 31 transactions, he sold a cumulative 60,000+ shares at prices ranging from $511.98 to $547.75, all executed at a market price far above the buy price. This pattern—selling high while buying low—could be a classic “cut the tail” move, freeing cash for other ventures or simply a tactical rebalancing of his portfolio. It also raises a question: is Friedman hedging against a potential short‑term dip, or does he see value in accumulating shares as the stock recovers?

Implications for Investors The juxtaposition of aggressive selling and a significant purchase is a double‑edged sword. On one hand, the buy at $15.80 demonstrates long‑term conviction; on the other, the rapid sell‑offs could indicate a short‑term profit‑taking stance. For investors, this signals that insider sentiment is mixed: Friedman may believe in Madrigal’s long‑term upside but is also managing liquidity or risk exposure. The net effect on the stock price may be minimal given the high liquidity and the relatively small percentage of shares traded compared to the outstanding float.

Profile: Paul Friedman Friedman is a seasoned biotech insider with a history of frequent trading. Over the past year, his trades have consistently involved large block sizes (often 500–2,500 shares) at market‑aligned prices. His pattern shows a tendency to sell in clusters, suggesting a disciplined approach to realizing gains or reallocating capital. The 31 transactions on January 9 alone reflect a highly active trading schedule, uncommon among most directors who typically engage in fewer, larger trades. This behavior indicates a hands‑on investment philosophy, possibly linked to his role in strategic decision‑making within Madrigal’s senior management team.

What It Means for the Company’s Future Insider buying at a steep discount could be a harbinger of a rally if Madrigal’s pipeline progresses as anticipated. The company’s recent licensing deal for Ervogastat and the ongoing development of cardiovascular therapeutics position it favorably in a market eager for novel therapies. However, the negative P/E ratio and the recent decline in share price underscore the company’s ongoing financial challenges. If insider confidence remains strong despite these headwinds, it may reassure market participants and attract long‑term investors looking for upside potential in a high‑volatility biotech play.

Bottom Line Paul Friedman’s mixed buying and selling activity on January 9 reflects a nuanced insider perspective: a willingness to buy low and sell high, coupled with a strategic rebalancing of his portfolio. For investors, this duality suggests that while the company faces short‑term volatility, there is underlying conviction in Madrigal’s long‑term trajectory—particularly as it navigates its pipeline and seeks to capitalize on its recent licensing achievements.