CONSHOHOCKEN, PA — Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL) has secured a $500 million senior secured credit facility from funds managed by Blue Owl Capital (NYSE: OWL), strengthening its financial position as it seeks to expand its leadership in the treatment of metabolic dysfunction-associated steatohepatitis (MASH).
The non-dilutive financing includes a $350 million term loan funded at closing, which was partially used to refinance the company’s existing $115 million senior debt. Madrigal also has access to an additional $150 million delayed draw facility available at its discretion through December 2027. The agreement includes the potential for up to $250 million in additional credit, subject to mutual consent, to support future strategic development.
CEO Bill Sibold said the financing provides flexibility to fuel pipeline growth without equity dilution. “This agreement with Blue Owl meaningfully strengthens our capital position with non-dilutive funding to advance our MASH pipeline through smart, focused business development,” Sibold stated. He added that the company’s growth is supported by strong momentum in the U.S. launch of Rezdiffra, a pending patent for the drug extending protection through 2044, and progress in a key outcomes trial for advanced-stage MASH.
Madrigal has positioned Rezdiffra as a breakthrough therapy for patients with significant unmet medical needs. The condition, formerly known as NASH, affects millions globally and has limited treatment options. With a pivotal F4c outcomes trial underway, the company is betting on Rezdiffra and pipeline innovation to sustain long-term leadership in the space.
Sandip Agarwala, Managing Director and Head of Life Sciences at Blue Owl, described the investment as a vote of confidence. “Madrigal is well-positioned to transform the treatment landscape in MASH,” he said. “This investment reflects our high conviction in Madrigal’s strategy, execution capabilities and commitment to building a market-leading portfolio.”
Morgan Stanley & Co. LLC served as the sole structuring agent on the deal. Goodwin Procter LLP advised Madrigal, while Cooley LLP represented Blue Owl.
The financing deal comes at a pivotal time for Madrigal as it looks to broaden its clinical programs and pursue strategic opportunities in one of biotech’s most closely watched therapeutic areas.
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