Merck in global license agreement with Hansoh Pharma for weight-loss drug
Merck & Co. Inc.
$98.90
10:00 18/12/24
Merck said on Wednesday that it has signed an exclusive global licensee agreement with Chinese biopharmaceutical firm Hansoh Pharma for weight-loss drug HS-10535.
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The drug is an investigational preclinical oral small molecule GLP-1 receptor agonist.
Under the agreement, Hansoh has granted Merck an exclusive global license to develop, manufacture and commercialise HS-10535. Hansoh will receive an upfront payment of $112m and is eligible to receive up to $1.9bn in milestone payments associated with the development, regulatory approval and commercialisation of the candidate, as well as royalties on sales.
Hansoh Pharma may co-promote or solely commercialise HS-10535 in China subject to certain conditions.
Merck said it will record a pre-tax charge of $112m, or $0.04 per share, to be included in GAAP and non-GAAP results in the fourth quarter of 2024.
Dr. Dean Y. Li, president, Merck Research Laboratorie, said: "We continue to leverage science-driven business development to augment and complement our robust pipeline.
"Through this agreement, we aim to build on our experience targeting incretin biology to evaluate HS-10535 and its potential to provide additional cardiometabolic benefits beyond weight reduction."