Madrigal Secures $500M for MASH Pipeline Expansion

Madrigal Pharmaceuticals (NASDAQ:MDGL) has secured a $500 million senior secured credit facility with Blue Owl Capital to fuel its MASH pipeline expansion. The non-dilutive funding will refinance existing debt and support strategic growth, with potential for an additional $250 million. Madrigal's strong liquidity and FDA-approved drug Rezdiffra for MASH with moderate to advanced fibrosis position it to lead in MASH therapeutics.

Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL) has secured a $500 million senior secured credit facility with Blue Owl Capital to fuel its metabolic dysfunction-associated steatohepatitis (MASH) pipeline expansion. The non-dilutive funding, announced on July 22, 2025, will primarily support the advancement of Madrigal's pipeline and refinance existing senior credit facilities [1].

The credit facility consists of a $350 million initial term loan funded at closing, a portion of which was used to refinance Madrigal's existing $115 million senior secured debt plus fees. Additionally, there is a $150 million delayed draw term loan facility (DDTL) available in multiple draws at Madrigal's discretion through December 2027. The agreement also provides for the possibility of additional incremental facilities of up to $250 million, available in multiple draws and at the mutual consent of Madrigal and Blue Owl, to support potential additional strategic business development activity [2].

Bill Sibold, Chief Executive Officer of Madrigal Pharmaceuticals, stated, "This agreement with Blue Owl meaningfully strengthens our capital position with non-dilutive funding to advance our MASH pipeline through smart, focused business development – a key element of our long-term growth strategy. With strong U.S. launch momentum, a forthcoming U.S. Rezdiffra patent that provides protection through 2044, and a pivotal F4c outcomes trial underway, this facility gives us the financial flexibility to advance the expansion of our pipeline and extend our leadership position in MASH" [1].

Sandip Agarwala, Managing Director and Head of Life Sciences at Blue Owl Capital, commented, "We are proud to support Madrigal at this pivotal moment in their growth trajectory. Madrigal is well-positioned to transform the treatment landscape in MASH, and we believe Rezdiffra represents a breakthrough therapy for patients with significant unmet need. This investment reflects our high conviction in Madrigal’s strategy, execution capabilities and commitment to building a market-leading portfolio for the future of MASH therapies" [1].

Morgan Stanley & Co. LLC acted as the sole structuring agent for Madrigal on the transaction, while Goodwin Procter LLP served as legal advisor to Madrigal and Cooley LLP advised Blue Owl [1].

References:
[1] https://finance.yahoo.com/news/madrigal-pharmaceuticals-secures-500-million-120000203.html
[2] https://www.biospace.com/press-releases/madrigal-pharmaceuticals-secures-500-million-in-senior-secured-credit-from-blue-owl-managed-funds-to-further-extend-leadership-position-in-mash