Madrigal Pharmaceuticals, a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), has entered into a $500 million senior secured credit facility with funds managed by Blue Owl Capital, a leading alternative asset manager, to primarily advance Madrigal’s pipeline to further extend its leadership position in MASH.

The non-dilutive financing 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;
• A $150 million delayed draw term loan facility (DDTL), available in multiple draws at Madrigal’s discretion through December 2027; and
• An option for 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.

“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,” said Bill Sibold, Chief Executive Officer of Madrigal Pharmaceuticals. “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.”

“We are proud to support Madrigal at this pivotal moment in their growth trajectory,” said Sandip Agarwala, Managing Director and Head of Life Sciences at Blue Owl Capital. “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.”

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