On January 9, 2026, Madrigal Pharmaceuticals announced an exclusive global license agreement with Pfizer granting Madrigal rights to develop, manufacture and commercialize ervogastat (PF-06865571), a Phase 2 oral DGAT-2 inhibitor for treatment of metabolic dysfunction-associated steatohepatitis (MASH). Under the deal, Madrigal will pay Pfizer a $50 million upfront fee, recordable as a fourth-quarter 2025 expense, and is eligible for future milestone payments alongside tiered royalties on net sales. The agreement also includes rights to two additional early-stage MASH assets previously held by Pfizer.

Ervogastat’s mechanism—blocking the final step in triglyceride assembly—offers a complementary action to Madrigal’s approved THR-β agonist Rezdiffra (resmetirom). In a published Phase 2 trial, 72 percent of patients receiving 150 mg of ervogastat achieved at least a 30 percent reduction in liver fat by MRI-PDFF, and 61 percent achieved a 50 percent reduction. Improvements were also seen in liver enzyme levels and stiffness measured by vibration-controlled transient elastography, with all active doses well tolerated. Madrigal plans drug-drug interaction studies with resmetirom and FDA consultation on a combined Phase 2 trial design in 2026.

This licensing deal expands Madrigal’s pipeline while reinforcing its leadership in next-generation MASH therapies and combination regimens. The $50 million upfront payment reflects Pfizer’s confidence in ervogastat’s value, and the milestone structure aligns both parties’ incentives to advance clinical development. For investors, access to ervogastat along with two preclinical assets diversifies Madrigal’s risk profile. Upcoming presentations at the 44th Annual J.P. Morgan Healthcare Conference on January 12, 2026, and initiation of combination studies represent key catalysts that could drive valuation re-rating upon demonstration of additive antisteatotic and antifibrotic efficacy.