Over the past year, shares of mid-cap biotech Madrigal Pharmaceuticals (NASDAQ: MDGL) have taken a beating, down by 25%. However, things could change in 2024. The drugmaker is awaiting a major catalyst that could send its stock price soaring. What's more, Wall Street has high expectations for Madrigal. The average analyst price target for the stock currently is $318, representing about 40% upside from its current price.

Will Madrigal Pharmaceuticals justify the Street's optimism in the next year? And more importantly, is the stock worth buying and holding onto for long-term investors?

Last year, Madrigal Pharmaceuticals submitted an application to the U.S. Food and Drug Administration (FDA) for resmetirom, a medicine for nonalcoholic steatohepatitis (NASH). The agency is expected to complete the review of Madrigal's application next month. There are several reasons why an approval here could be a big deal.

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Source Fool.com