Merck and Hansoh Pharma Sign Exclusive Global License for Oral GLP-1 Agonist

RAHWAY, N.J.—Merck, recognized as MSD outside the U.S. and Canada, has announced a strategic partnership with Hansoh Pharma, a Chinese biopharmaceutical firm, through an exclusive global license agreement aimed at advancing an investigational preclinical oral small molecule GLP-1 receptor agonist, named HS-10535. This compound is currently under exploration for its potential to offer benefits in the treatment of cardiometabolic conditions, extending beyond weight reduction.

Dr. Dean Y. Li, president of Merck Research Laboratories, expressed enthusiasm for the collaboration, emphasizing the strategic use of science-driven business development to enhance Merck’s existing pipeline. He noted that the agreement will utilize Merck’s experience in incretin biology to evaluate HS-10535’s potential benefits.

Under the terms of the agreement, Merck has acquired the rights to develop, manufacture, and commercialize HS-10535 globally. In return, Hansoh Pharma will receive an upfront payment of $112 million and is eligible for milestone payments that could reach up to $1.9 billion, contingent on development, regulatory approval, and commercialization successes. Additionally, Hansoh Pharma is positioned to receive royalties from sales and has the option to co-promote or exclusively market the compound in China, contingent upon certain conditions being met.

Merck is set to record a pre-tax charge of $112 million, equating to $0.04 per share, to be reflected in both GAAP and non-GAAP results in the fourth quarter of 2024. This financial arrangement underscores Merck’s commitment to investing in promising therapeutic candidates.

Ms. Eliza Sun, Executive Director of the Board at Hansoh Pharma, hailed the collaboration with Merck as a significant milestone. She highlighted Hansoh Pharma's emerging leadership in metabolic diseases and expressed confidence that Merck’s established expertise in cardiometabolic diseases will significantly expedite the development of HS-10535, potentially benefiting patients globally.

Hansoh Pharma is a prominent pharmaceutical enterprise in Greater China, renowned for its commitment to innovation and the treatment of major illnesses across various domains, including oncology, anti-infectives, central nervous system diseases, metabolic diseases, and autoimmune disorders. The firm has consistently ranked among the top global pharmaceutical companies and is recognized for its robust research and development pipeline. Listed on the Hong Kong Stock Exchange since June 2019, Hansoh Pharma is also identified as a national key high-tech enterprise and a technology innovation demonstration entity.

Merck, operating as MSD outside the United States and Canada, is united by a mission to harness leading-edge science to save and enhance lives worldwide. With an extensive history spanning over 130 years, Merck has been a beacon of hope through the development of crucial medicines and vaccines. The company aspires to be the premier research-intensive biopharmaceutical organization, focusing on innovative health solutions that advance disease prevention and treatment. Merck prides itself on fostering a diverse and inclusive global workforce, while ensuring responsible operations that contribute to a safe, sustainable, and healthy future for communities worldwide.

This strategic alignment between Merck and Hansoh Pharma is poised to accelerate the development of HS-10535, potentially ushering in a new era of therapeutic options for cardiometabolic conditions, thereby addressing significant unmet medical needs on a global scale.