Merck Enters Obesity Market with $2 Billion Deal for Chinese Oral GLP-1 Drug

Deal Details:
Merck has acquired the exclusive global rights to develop, manufacture, and commercialize HS-10535, an oral GLP-1 receptor agonist from Hansoh Pharma, for an upfront payment of $112 million and potential additional payments of up to $1.9 billion based on developmental and regulatory milestones134.

Drug Mechanism:
HS-10535 is a preclinical oral small molecule GLP-1 receptor agonist that mimics a hormone in the intestines to stimulate insulin secretion and slow gastric emptying, helping users feel full for longer periods3.

Market Context:
This move marks Merck's entry into the obesity space, following other big pharma companies that have already made significant investments in GLP-1 receptor agonists, which have shown potential in treating obesity and providing cardiovascular benefits23.

Partnership:
Hansoh Pharma retains the right to co-promote or solely commercialize HS-10535 in China, subject to certain conditions3.

Strategic Importance:
The deal aligns with Merck's strategy to leverage science-driven business development to augment its pipeline, particularly in targeting incretin biology for cardiometabolic benefits beyond weight reduction3.

Sources:

1. https://www.nasdaq.com/articles/merck-enters-obesity-space-buys-rights-hansohs-oral-glp-1-drug

2. https://endpts.com/mercks-long-awaited-obesity-move-is-an-oral-glp-1-from-china/

3. https://cardiovascularbusiness.com/topics/healthcare-management/healthcare-economics/merck-spends-19b-license-new-glp-1-receptor-agonist

4. https://fortune.com/asia/2024/12/18/merck-snags-chinese-obesity-drug-in-nearly-2-billion-deal/