What's Happening?
Madrigal Pharmaceuticals has entered into a licensing agreement with Pfizer to acquire rights to Pfizer's oral DGAT-2 inhibitor, ervogastat. This move aims to enhance Madrigal's treatment offerings for metabolic dysfunction-associated steatohepatitis (MASH), a severe form of non-alcoholic fatty liver disease (NAFLD). Madrigal was the first to market a therapy for MASH with its drug Rezdiffra, which targets patients with moderate to advanced liver scarring. The combination of Rezdiffra and ervogastat is expected to provide complementary mechanisms of action, potentially offering additive therapeutic benefits. Rezdiffra has already achieved significant sales, reaching $287 million in the third quarter of 2025, and is projected to surpass $1 billion
annually. The licensing deal involves an upfront payment of $50 million to Pfizer, with additional milestone payments. Madrigal's CEO, Bill Sibold, expressed confidence in the potential of this combination therapy to advance the treatment of MASH.
Why It's Important?
The licensing agreement between Madrigal and Pfizer is significant as it represents a strategic effort to address the growing market for MASH therapies, which is anticipated to be worth tens of billions of dollars annually. MASH affects millions of people and is considered a major growth area in the pharmaceutical industry. By combining Rezdiffra with ervogastat, Madrigal aims to strengthen its position in this competitive market, especially as it faces competition from Novo Nordisk's GLP-1 agonist, Wegovy. The success of this combination therapy could lead to improved patient outcomes and solidify Madrigal's leadership in the MASH treatment space. Additionally, the deal underscores the importance of strategic partnerships and licensing agreements in the pharmaceutical industry to accelerate drug development and commercialization.
What's Next?
Madrigal plans to further develop the combination therapy of Rezdiffra and ervogastat, with a focus on clinical trials to validate the efficacy and safety of the combined treatment. The company is expected to provide more details about the development program during its presentation at the JPM Healthcare conference in San Francisco. As the therapy progresses through clinical trials, Madrigal will likely seek regulatory approvals in various markets, aiming to expand its reach beyond the U.S. and Germany, where Rezdiffra has already launched. The outcome of these trials and subsequent market launches will be crucial in determining the commercial success of the combination therapy.
