Madrigal Pharmaceuticals (MDGL) announced on Friday an exclusive global license agreement with Pfizer (PFE) for ervogastat, an experimental therapy that could enhance the clinical effects of Rezdiffra, MDGL’s FDA-approved treatment for a liver disease called metabolic dysfunction-associated steatohepatitis.
Per the deal terms, Madrigal (MDGL) has obtained an exclusive global license to develop, manufacture, and commercialize ervogastat and two other early-stage MASH assets by paying $50M upfront to Pfizer (PFE), which will be reflected in the company’s Q4 2025 financials.
Additionally, the New York-based pharma giant is eligible to receive certain milestone payments and royalties on net sales if products are commercialized.
Ervogastat, a liver-directed oral therapy, has a mechanism of action that could generate additional clinical benefits when combined with Rezdiffra, Madrigal (MDGL) said, noting that a drug-to-drug interaction study combining the drugs is expected to start this year.
“Because Rezdiffra and ervogastat act on distinct yet complementary pathways that drive liver fat accumulation, this combination has the potential to produce additive antisteatotic and antifibrotic efficacy,” said Professor Quentin Anstee, who has led a prior Phase 2 study of ervogastat.