Merck and Hansoh Pharma Collaborate on Promising Oral GLP-1 Receptor Agonist for Cardiometabolic Diseases

Published: 20 Dec 2024

Author: Precedence Research

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Merck signed an exclusive global licensing agreement with the Chinese biopharmaceutical company Hansoh Pharma for HS-10535, an investigational oral GLP-1 receptor agonist. The deal will accelerate the development, manufacturing, and commercialization of the preclinical candidate, which has an expected therapeutic value for cardiometabolic diseases. Hansoh Pharma will receive an upfront payment of $112 million and is eligible for an optimization of the payment based on milestones worth almost $1.9 billion. In addition, the deal includes royalties from future sales and co-promotion of the drug in China. The partnership is regarded as an important step toward global healthcare solutions and, thus, addresses unmet medical needs, thereby expanding options for patients worldwide.

Strategic Collaboration and Financial Details

Merck has signed an agreement with Hansoh Pharma to develop, manufacture, and commercialize HS-10535 globally. The deal will grant Merck exclusive rights to the drug, while Hansoh Pharma will receive an upfront payment of $112 million and potential milestone payments of up to $1.9 billion. The partnership intends to expand Merck's cardiometabolic pipeline, focusing on unmet needs in cardiometabolic care. HS-10535, a preclinical candidate targeting incretin biology, may offer cardiometabolic benefits beyond weight management. Commenting on the initiative, Dr. Dean Y. Li, president of Merck Research Laboratories, stated that the initiative would address critically unmet medical needs in diabetes, obesity, and cardiovascular risks.

Hansoh Pharma’s Expanding Global Presence

Hansoh Pharma has entered into a collaboration with Merck to develop HS-10535, a drug that will accelerate the development of cardiometabolic therapies. HS-10535 is designed to speed up the development of cardiometabolic therapies to meet the rapidly growing demand for GLP-1 receptor agonists that treat a spectrum of cardiometabolic conditions like diabetes and obesity. Additionally, Merck has exclusive rights to integrate HS-10535 into its cardiometabolic portfolio as part of its strategy to introduce groundbreaking therapies that address the complex health challenges facing the world. The collaboration aims to hasten the development of HS-10535 and provide a turnaround beneficial to patients worldwide.

Merck anticipates taking a pre-tax charge of $112 million in its fourth-quarter financial statements in 2024 that reflect the upfront payment. This illustrates an emerging trend of alliances between Western and Asian pharmaceutical companies to leverage regional expertise and sharpen the development of breakthrough therapeutics. The collaboration illustrates the globalization of drug development and how important partnerships become in filling unmet medical needs.

Merck and Hansoh Pharma are teaming up to co-develop HS-10535, an oral GLP-1 receptor agonist undergoing preclinical evaluation. It represents an important stride in developing innovative new therapies for cardiometabolic conditions. The partnership aims to close the current therapeutic void and fast-track HS-10535 through the clinical and regulatory pipeline. In line with up to $1.9 billion in fees tied to its success, the deal demonstrates strong confidence in the candidate's therapeutic promise and market viability. This agreement would strengthen Merck's position in cardiometabolic therapy, an area expected to grow exponentially with increasing rates of diabetes, obesity, and cardiovascular diseases.