VA awards $35.6K for REZDIFFRA, a pharmaceutical preparation, to Madrigal Pharmaceuticals

Contract Overview

Contract Amount: $35,623 ($35.6K)

Contractor: Madrigal Pharmaceuticals, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-03

End Date: 2026-04-07

Contract Duration: 4 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: REZDIFFRA 80 MG

Place of Performance

Location: CARROLLTON, DENTON County, TEXAS, 75010

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35,623.08 to MADRIGAL PHARMACEUTICALS, INC for work described as: REZDIFFRA 80 MG Key points: 1. The contract is for a specific pharmaceutical preparation, REZDIFFRA. 2. Madrigal Pharmaceuticals, Inc. is the sole awardee. 3. The contract duration is short, from April 3, 2026, to April 7, 2026. 4. The award was made under full and open competition. 5. The total award amount is $35,623.08.

Value Assessment

Rating: fair

The per-unit cost is not explicitly calculable without quantity. However, the total award of $35,623.08 for a 4-day delivery order of a specialized pharmaceutical suggests a potentially high cost per unit, requiring careful review against market benchmarks for similar high-value medications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to promote price discovery and achieve competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for the procurement of a specialized pharmaceutical, with the expectation that the competitive process will ensure a reasonable price.

Public Impact

Veterans will receive access to a specific medication, REZDIFFRA. The short duration suggests a specific, immediate need for the pharmaceutical. The award highlights the VA's role in providing specialized medical supplies to its beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 89 / 10

Warning Flags

Potential for high per-unit cost given the nature of specialized pharmaceuticals.
Short contract duration may indicate limited market research or a specific urgent need.

Positive Signals

Awarded under full and open competition.
Clear identification of the specific pharmaceutical product.

Sector Analysis

The pharmaceutical sector is characterized by high research and development costs, patent protections, and significant regulatory oversight. Spending benchmarks in this area are highly variable depending on the drug's therapeutic class, stage of development, and market exclusivity.

Small Business Impact

This contract was not awarded to a small business. The focus appears to be on specialized pharmaceutical manufacturers, which are often larger, established companies.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure proper execution and accountability.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High cost of specialized pharmaceuticals.
Short contract duration may not cover long-term needs.
Potential for limited competition in niche pharmaceutical markets.
Need for ongoing monitoring of drug efficacy and patient outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35,623.08 to MADRIGAL PHARMACEUTICALS, INC. REZDIFFRA 80 MG

Who is the contractor on this award?

The obligated recipient is MADRIGAL PHARMACEUTICALS, INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $35,623.08.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-07.

What is the specific medical indication for REZDIFFRA, and how does its cost compare to alternative treatments for the same condition?

REZDIFFRA (resmetirom) is indicated for the treatment of noncirrhotic nonalcoholic steatohepatitis (NASH) with moderate to advanced fibrosis. Its cost is a significant factor, as it is a novel therapy. A thorough cost-effectiveness analysis comparing REZDIFFRA to other available treatments or supportive care strategies is crucial to ensure value for taxpayer dollars, especially considering potential long-term treatment durations.

Given the short contract duration, what is the risk of supply chain disruption or an inability to meet ongoing patient needs beyond April 2026?

The 4-day delivery order period presents a risk of supply chain disruption if the initial order does not adequately cover immediate patient needs or if follow-on requirements are not promptly addressed. The VA must have a robust plan for ensuring continuous access to REZDIFFRA beyond this initial delivery order, potentially through subsequent contracts or by confirming sufficient stock availability.

How effectively did the full and open competition process ensure the best possible price for this specialized pharmaceutical, considering potential market limitations?

While full and open competition is the preferred method, the market for highly specialized pharmaceuticals like REZDIFFRA may have limited players. The effectiveness of the competition hinges on whether multiple qualified bidders were genuinely able to participate and offer competitive pricing. The VA should document the bidding process and justification if only one or a few bids were received to ensure true price discovery.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 BARR HARBOR DR STE 200, CONSHOHOCKEN, PA, 19428

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,623

Exercised Options: $35,623

Current Obligation: $35,623

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79725D0004

IDV Type: FSS

Timeline