- siRNA technology works by muting genes responsible for disease-driving proteins.
- The company’s pipeline also includes MGL-2086 with human studies scheduled later this year.
- Madrigal had signed a global licensing agreement with Pfizer for Ervogastat in January.
Madrigal Pharmaceuticals (MDGL), on Wednesday, announced an exclusive global licensing agreement with Suzhou Ribo Life Science and its unit Ribocure for six preclinical small interfering RNA (siRNA) programs targeting metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease that can lead to cirrhosis, liver failure, cancer, transplants, and early death.
MDGL shares fell 0.6% in morning trade.
Details Of The Deal
Ribo has granted Madrigal an exclusive global license to develop, manufacture, and commercialize the six compounds. Under the deal, Ribo will receive $60 million upfront, with potential milestone payments reaching $4.4 billion, plus royalties on future sales.
siRNA technology works by muting genes responsible for disease-driving proteins. Madrigal plans to combine the technology with its drug Rezdiffra. The company’s pipeline also includes MGL-2086 with human studies scheduled later this year.
“We believe meeting future patient needs in MASH will require combination approaches and treatments tailored to genetic drivers of disease. At the start of 2025, Madrigal was a single-product company launching the first medication for MASH. Today, we have the foundational therapy in Rezdiffra, a fully enrolled F4c outcomes study, and an industry-leading MASH pipeline with more than 10 programs targeting different drivers of the disease,” said Bill Sibold, Chief Executive Officer of Madrigal.
Licencing Deal With Pfizer
This follows Madrigal’s global licensing agreement with Pfizer for Ervogastat in January. The deal grants Madrigal rights to two additional early-stage MASH assets, while Pfizer will receive a $50 million upfront payment, to be recorded in Madrigal’s fourth-quarter 2025 expenses, along with potential milestone payments and royalties on future sales.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits remained in the ‘bearish’ territory over the past 24 hours.
One user questioned the company’s decision on the agreement.
Another user said that a “buyout is off the table.”
Year-to-date, the stock has shed around 18%.
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