Madrigal secures $500 million credit facility to advance MASH pipeline

CONSHOHOCKEN, Pa. - Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), a $7.35 billion market cap biopharmaceutical company with strong financial health according to InvestingPro metrics, has entered into a $500 million senior secured credit facility with funds managed by Blue Owl Capital (NYSE:OWL), the company announced Tuesday.

The non-dilutive financing package includes a $350 million initial term loan funded at closing, with part of the proceeds used to refinance Madrigal’s existing $115 million senior secured debt. The agreement also provides for a $150 million delayed draw term loan facility available through December 2027 and the option for additional incremental facilities of up to $250 million. The company maintains a healthy current ratio of 5.91, with liquid assets well exceeding short-term obligations.

Madrigal plans to use the funds primarily to advance its pipeline for metabolic dysfunction-associated steatohepatitis (MASH), according to the company’s statement.

"This agreement with Blue Owl meaningfully strengthens our capital position with non-dilutive funding to advance our MASH pipeline through smart, focused business development," said Bill Sibold, Chief Executive Officer of Madrigal Pharmaceuticals. According to InvestingPro data, analysts maintain a strong buy consensus on MDGL, with revenue growth forecast at 276% for the current fiscal year.

Madrigal’s medication, Rezdiffra (resmetirom), is the first and only treatment approved by the FDA for MASH with moderate to advanced fibrosis. The company is currently conducting a Phase 3 outcomes trial evaluating Rezdiffra for the treatment of compensated MASH cirrhosis.

Sandip Agarwala, Managing Director and Head of Life Sciences at Blue Owl Capital, expressed confidence in Madrigal’s prospects, stating that "Madrigal is well-positioned to transform the treatment landscape in MASH."

Morgan Stanley & Co. LLC acted as sole structuring agent for the transaction, with Goodwin Procter LLP serving as legal advisor to Madrigal and Cooley LLP advising Blue Owl.

The announcement comes as Madrigal reports strong U.S. launch momentum for Rezdiffra and anticipates a forthcoming U.S. patent that would provide protection through 2044. The stock has demonstrated robust performance with a 15.28% return over the past year. For deeper insights into Madrigal’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, Madrigal Pharmaceuticals has received significant attention for its MASH treatment, Rezdiffra. The United States Patent and Trademark Office issued a Notice of Allowance for the FDA-approved use of Rezdiffra, extending patent protection through September 30, 2044. This development ensures the treatment’s exclusivity for nearly two decades, securing its commercial position. Oppenheimer responded to this patent news by raising its price target for Madrigal Pharmaceuticals to $500.00, maintaining an Outperform rating. Additionally, Citizens JMP reiterated its Market Outperform rating, highlighting the increased prescription rate of Rezdiffra, which rose to 46% in the second quarter of 2025. The company is also set to present a comparative meta-analysis of Rezdiffra at an upcoming medical conference. These developments reflect Madrigal Pharmaceuticals’ strategic advancements in securing and promoting its treatment for noncirrhotic MASH.

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