On December 18, 2024, Merck signed a licensing agreement worth up to $2 billion with Hansoh Pharmaceuticals, a Chinese biotech company. The deal grants Merck an exclusive global license to develop, manufacture, and commercialize HS-10535, an investigational preclinical oral small molecule GLP-1 receptor agonist.
Hansoh Pharma will receive an upfront payment of $112 million and is eligible for up to $1.9 billion in milestone payments, along with royalties on product sales. This strategic move positions Merck to compete in the rapidly expanding cardiometabolic and weight management space.
Merck plans to evaluate HS-10535's potential for additional cardiometabolic benefits beyond weight loss. The company expects to record a fourth-quarter charge of four cents per share related to this transaction, marking its entry into a highly competitive and lucrative market.
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