Merck and Hansoh Pharma Join Forces to Advance GLP-1 Innovation

Merck (NYSE: MRK), known as MSD outside the U.S. and Canada, and Hansoh Pharma, a Chinese biopharmaceutical company, have announced a global collaboration for the development of HS-10535, an investigational oral small molecule GLP-1 receptor agonist currently in the preclinical stage. This partnership reflects a strategic effort to harness incretin biology for cardiometabolic benefits.

Exclusive Global License Agreement

Hansoh Pharma has granted Merck the exclusive rights to develop, manufacture, and commercialize HS-10535 globally. As part of the agreement:

• Hansoh Pharma will receive an upfront payment of $112 million.
• Merck has committed up to $1.9 billion in milestone payments tied to the asset's development, regulatory approval, and commercialization.
• Hansoh Pharma will also earn royalties on global sales and retain the option to co-promote or exclusively commercialize HS-10535 in China under certain conditions.

Merck will recognize the upfront payment of $112 million, equating to $0.04 per share, as a pre-tax charge in its fourth-quarter 2024 financial results.

Advancing Cardiometabolic Innovation

Dr. Dean Y. Li, president of Merck Research Laboratories, highlighted Merck’s focus on science-driven business development. "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,” he stated.

The development of HS-10535 aligns with Merck’s robust pipeline efforts and expertise in cardiometabolic diseases, an area of high unmet need.

Hansoh Pharma’s Growth in Metabolic Diseases

Eliza Sun, Executive Director of the Board at Hansoh Pharma, emphasized the significance of the partnership. “Hansoh Pharma is becoming an emerging leader in metabolic diseases, and we see Merck’s expertise and capabilities as key to accelerating the development of this promising asset for patients worldwide,” she said.

Implications for GLP-1 Research

This collaboration marks a significant step in leveraging GLP-1 receptor agonists, known for their efficacy in weight reduction and other metabolic benefits. The global license agreement combines Hansoh Pharma’s innovation with Merck’s established infrastructure, aiming to bring transformative therapies to the market.