Madrigal Signs Exclusive License Agreement with Pfizer for Ervogastat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
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Madrigal Pharmaceuticals (MDGL) announced an exclusive global license agreement with Pfizer (PFE) for ervogastat, a clinical-stage oral DGAT-2 inhibitor, strengthening the company's leadership in shaping the next generation of MASH therapies and combination regimens. DGAT-2 inhibitors work by blocking the final step in triglyceride assembly and storage, resulting in lower hepatic triglycerides, reduced lipotoxic fat and decreased inflammation in the liver. Under the agreement, Pfizer has granted Madrigal an exclusive global license to develop, manufacture and commercialize ervogastat, as well as rights to two additional early-stage MASH pipeline assets. Pfizer received an upfront payment of $50 million USD, which will be reflected in Madrigal's fourth quarter 2025 expenses, and is eligible for additional payments if certain milestones are achieved, as well as royalties on net sales.
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Analyst Views on MDGL
Wall Street analysts forecast MDGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDGL is 636.22 USD with a low forecast of 527.00 USD and a high forecast of 900.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 494.690
Low
527.00
Averages
636.22
High
900.00
Current: 494.690
Low
527.00
Averages
636.22
High
900.00
About MDGL
Madrigal Pharmaceuticals, Inc. is a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease with high unmet medical need. The Company’s medication, Rezdiffra (resmetirom), is a once-daily, oral, liver-directed THR-b agonist designed to target key underlying causes of MASH. Rezdiffra is the medication approved by the United States Food and Drug Administration (FDA) for the treatment of MASH with moderate to advanced fibrosis (consistent with stages F2 to F3). Rezdiffra is a prescribed medicine used along with diet and exercise to treat adults with nonalcoholic steatohepatitis (NASH) with moderate to advanced liver scarring (fibrosis), but not with cirrhosis of the liver. An ongoing Phase III outcomes trial is evaluating Rezdiffra for the treatment of compensated MASH cirrhosis (consistent with stage F4c).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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