March 18 (Reuters) - Madrigal Pharmaceuticals said on Monday it plans to raise $500 million through a public offering of shares, primarily to fund the launch of its potentially multi-billion dollar drug to treat a severe type of fatty liver disease.

The U.S. FDA had last week approved Rezdiffra, the first drug to treat the disease known as non-alcoholic steatohepatitis (NASH), which Madrigal plans to launch next month.

NASH affects about 1.5 million people in the United States, according to the company's estimates.

The global market for NASH treatments is expected to surpass $16 billion by 2030, as per market research firm Vision Research Reports. At least two analysts estimated Madrigal's drug alone would generate about $5 billion in peak annual sales.

Madrigal intends to raise the $500 million through common stock and pre-funded warrants to purchase shares. It has fixed the warrants at nearly the same price as the stock being issued.

The company said it also intends to use the net proceeds from the offering for general corporate purposes.

As of Dec. 31, 2023, Madrigal had cash, cash equivalents and marketable securities of about $634.1 million.

Goldman Sachs & Co. LLC, Jefferies, TD Cowen, Evercore ISI, Piper Sandler, UBS Investment Bank and Citizens JMP are acting as joint bookrunning managers of the proposed offering, Madrigal said. (Reporting by Mariam Sunny in Bengaluru; Editing by Krishna Chandra Eluri)