Cilofexor is primarily investigated for its potential therapeutic applications in liver diseases, particularly nonalcoholic steatohepatitis (NASH). It functions as a farnesoid X receptor (FXR) agonist, which plays a critical role in regulating bile acid, lipid, and glucose metabolism. By activating FXR, it helps reduce liver inflammation, fibrosis, and fat accumulation, making it a promising candidate for managing NASH. Additionally, its mechanism of action may also contribute to improving metabolic parameters, such as insulin sensitivity and cholesterol levels, in patients with liver-related metabolic disorders. Clinical trials are ongoing to evaluate its efficacy and safety in these conditions.