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CONSHOHOCKEN, Pa. - Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), a $6.5 billion market cap company with strong financial health indicators according to InvestingPro, announced Wednesday it has entered into an exclusive global license agreement with CSPC Pharmaceutical Group Limited (HKEX:1093) for SYH2086, a preclinical oral small molecule GLP-1 receptor agonist.
Under the agreement, Madrigal will pay CSPC an upfront payment of $120 million and up to $2 billion in potential milestone payments, plus royalties on net sales. The transaction is expected to close in the fourth quarter of 2025, pending regulatory clearance. With a robust current ratio of 5.91, Madrigal appears well-positioned to handle the upfront payment commitment.
Madrigal plans to initiate clinical development of SYH2086 in the first half of 2026, with the aim of creating a combination therapy with its FDA-approved MASH treatment Rezdiffra (resmetirom).
"This agreement aligns perfectly with our long-term goal to extend our leadership in MASH by building a pipeline anchored by Rezdiffra," said Bill Sibold, Chief Executive Officer of Madrigal. "We believe a combination of Rezdiffra and SYH2086 has the potential to deliver a best-in-class oral treatment for patients with MASH."
The company’s strategy focuses on combining Rezdiffra’s fibrosis and lipid reduction benefits with the weight loss effects of GLP-1 therapy in a once-daily pill format. According to Madrigal’s Chief Medical Officer David Soergel, data from the Phase 3 MAESTRO-NASH trial showed that even modest weight loss enhanced Rezdiffra’s antifibrotic benefits.
SYH2086 has demonstrated glucose-lowering and weight-loss effects in preclinical studies with no significant safety concerns reported, according to the press release statement.
CSPC will retain rights to develop and commercialize other oral GLP-1 agonists in China under certain conditions. Ahead of Madrigal’s upcoming earnings report on August 5, InvestingPro analysis reveals analyst price targets ranging from $248 to $541, reflecting diverse market expectations for this development-stage pharmaceutical company. Get deeper insights with InvestingPro’s comprehensive research report, available along with 10+ additional ProTips for MDGL.
In other recent news, Madrigal Pharmaceuticals has secured a $500 million credit facility with Blue Owl Capital. This financing includes a $350 million initial term loan and a $150 million delayed draw term loan facility available through December 2027. Madrigal has also received a Notice of Allowance from the U.S. Patent and Trademark Office for its MASH treatment, Rezdiffra, extending patent protection through September 30, 2044. The patent covers the FDA-approved use of Rezdiffra, which is the first FDA-approved treatment for noncirrhotic MASH with moderate to advanced liver fibrosis. Oppenheimer has raised its price target for Madrigal Pharmaceuticals to $500.00, maintaining an Outperform rating, following the patent news. Additionally, Citizens JMP has reiterated its Market Outperform rating on Madrigal, highlighting the increased prescription rate of Rezdiffra. Approximately 60% of patients are on paid medication, with high persistence rates noted. These developments reflect Madrigal’s ongoing efforts to advance its MASH pipeline and strengthen its market position.
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