Biotech Deals

Madrigal Secures $2B Deal for CSPC’s Preclinical GLP-1

Madrigal Pharmaceuticals has partnered with China’s CSPC in a $2B deal for SYH2086, an oral GLP-1 candidate for MASH and metabolic disease.

SDW Editor

02 Aug 2025 — 1 min read

On July 30, 2025, CSPC Pharmaceutical Group signed a global licensing agreement with U.S.-listed Madrigal Pharmaceuticals, granting exclusive rights to develop, manufacture, and commercialize SYH2086—CSPC’s oral small-molecule GLP-1 receptor agonist targeting metabolic-associated steatohepatitis (MASH). The deal includes a $120 million upfront payment, up to $2 billion in milestone payments, plus royalties.

Deal Highlights

$120 million upfront, rising to over $2 billion in total development, regulatory, and commercial milestones.
Double-digit royalties on net sales.
CSPC retains rights to develop and commercialize oral GLP-1 drugs beyond SYH2086 within China.

Why It Matters

This deal signals China’s growing role as a global innovation hub, not just a market. Madrigal plans to combine SYH2086 with its FDA-approved MASH therapy, Rezdiffra™, potentially delivering a unique oral treatment with both metabolic and antifibrotic effects.

Asset Profile: SYH2086

A novel oral GLP-1 receptor agonist in preclinical development, showing promising glucose-lowering and weight-loss effects in animal studies with a favorable safety profile. It targets the massive obesity and diabetes market, with crossover potential in MASH.

Strategic Implications

With global pharma pipelines drying up, big players are increasingly partnering with Chinese biotech innovators. Streamlined Chinese regulations and a maturing biotech ecosystem enhance these collaborations, reflected by similar recent deals like AstraZeneca’s AI collaboration with CSPC and Hansoh’s GLP-1 licensing.

What’s Next

Madrigal aims to start clinical development in H1 2026.
Watch for IND filings, Phase I trial updates, and regulatory progress in China and the U.S. on MASH treatment standards.

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