Merck enters $2B licensing deal for weight loss drug

Merck has entered into a global licensing agreement with Chinese biopharmaceutical company Hansoh Pharma to develop an oral small molecule GLP-1 receptor agonist, HS-10535. 

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The drug is in preclinical stages and aims to target cardiometabolic benefits, including weight reduction, according to a Dec. 18 news release from Merck. Under the agreement, Merck will have exclusive rights to develop, manufacture and commercialize the drug worldwide. 

Hansoh Pharma will receive an upfront payment of $112 million, with the potential for an additional $1.9 billion in milestone payments tied to the drug’s development, regulatory approval and commercialization. 

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