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Merck Licenses Oral GLP-1 Drug from Hansoh Pharma for Potential Cardiometabolic Benefits in $2 Billion Deal

Dec 18, 2024, 12:15 PM

Merck & Co. Inc. has entered into an exclusive global license agreement with Hansoh Pharma, a Chinese biopharmaceutical company, for the development, manufacture, and commercialization of HS-10535, an investigational preclinical oral small molecule GLP-1 receptor agonist. The agreement includes an upfront payment of $112 million to Hansoh Pharma, with the potential for up to $1.9 billion in milestone payments and royalties on sales. Merck aims to leverage this deal to enhance its pipeline in cardiometabolic diseases, focusing on the potential of HS-10535 to provide cardiometabolic benefits beyond weight reduction. The transaction reflects Merck's strategy to augment its offerings in the growing obesity drug market, which is expected to reach over $100 billion annually by the early 2030s.