July 30 (Reuters) - Madrigal Pharmaceuticals ( MDGL )

said on Wednesday it has entered into an up to $2 billion global

license agreement with CSPC Pharmaceutical ( CHJTF ) to develop

an oral GLP-1 drug for a type of liver disease.

The U.S. drugmaker said it plans to start development of the

experimental drug, SYH2086, for a fatty liver disease known as

metabolic dysfunction-associated steatohepatitis (MASH) in the

first half of 2026.

Madrigal's Rezdiffra became the first drug to receive the

U.S. Food and Drug Administration's nod for the treatment of

MASH in 2024.

Under the agreement, CSPC will receive an upfront payment of

$120 million and is eligible to receive up to $2 billion in

milestone payments if certain development, regulatory and

commercial milestones are achieved, as well as royalties on net

sales.

"We believe a combination of Rezdiffra and SYH2086 has the

potential to deliver a best-in-class oral treatment for patients

with MASH," said Madrigal CEO Bill Sibold.