Merck & Co. Enters Oral GLP-1 Market with $2 Billion Hansoh Pharma Deal

Collaboration Details:
Merck & Co. has entered into a global licensing partnership with Chinese biotech Hansoh Pharma to develop and commercialize HS-10535, an investigational oral GLP-1 receptor agonist for obesity treatment25.

Financial Terms:
The deal includes an upfront payment of $112 million and potential milestone payments of up to $1.9 billion, plus royalties on net sales25.

Market Context:
The global GLP-1 market is valued at approximately $49.3 billion in 2024 and is expected to grow significantly, with the broader obesity drug sector potentially reaching $200 billion by 20315.

Strategic Importance:
This partnership positions Merck at the forefront of innovation in weight-loss solutions, offering a potentially more convenient oral formulation compared to existing injectable GLP-1 therapies5.

Competitive Landscape:
Merck will compete with other pharma giants like Eli Lilly and Novo Nordisk in the oral GLP-1 space, aiming to leverage its robust manufacturing capabilities and extensive marketing infrastructure to bring HS-10535 to a diverse, worldwide patient population25.

Sources:

2. https://www.biospace.com/business/merck-joins-obesity-pill-race-with-2b-hansoh-deal

5. https://www.ctol.digital/news/siemens-sells-stake-energy-fund-altair-acquisition-ai-revolution/