Merck comes up with weight loss drug deal worth $2 billion with China

Merck announced a weight loss drug deal Wednesday with China-based Hansoh worth up to $2 billion for the pill code-named HS-10535. It includes an upfront $112 million licensing rights payment for global sales outside China.

Hansoh could get an additional $1.9 billion if it reaches clinical, regulatory and commercial milestones.

The drug is experimental and works by targeting a gut hormone called GLP-1 like Wegovy does.

“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,” said Merck Research Laboratories president Dr. Dean Y. Li in a statement.

Hansoh Pharma Executive Director of the Board Eliza Sun said in a statement, “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.”

Under terms of the deal, Merck will gain the exclusive global license to develop, manufacture and commercialize Hansoh Pharma’s HS-10535.

The drug hasn’t begun human trials yet and Merck hasn’t indicated the diseases it will test the drug on first.

If the drug is successful, Merck will be able to be a player in a worldwide obesity drug market that could be worth $100 billion a year by the early 2030s.

In 2023, AstraZeneca licensed an experimental oral GLP-1 drug made by China-based Eccogene.