Merck has secured exclusive rights to develop and sell an oral weight loss drug through a lucrative licensing deal with Hansoh Pharma, potentially worth up to $2 billion. The agreement entails an initial payment of $112 million to Hansoh Pharma, along with milestone payments that could total up to $1.9 billion.
The focus of this partnership is on HS-10535, a pre-clinical small molecule glucagon-like peptide-1 (GLP-1) receptor agonist. Dean Y. Li, president of Merck Research Laboratories, stated, "We continue to leverage science-driven business development to augment and complement our robust pipeline." This partnership aims to enhance the evaluation of HS-10535, emphasizing its potential to deliver additional cardiometabolic benefits beyond simple weight reduction. Merck's financial results for the fourth quarter will include a pre-tax charge of $112 million, translating to approximately $0.04 per share.
Recently, the company adjusted its full-year earnings per share guidance downwards, from a previous range of $7.94 to $8.04 to $7.72 to $7.77. Analysts from FactSet have projected non-GAAP EPS of $1.81 for the fourth quarter and $7.74 for the entire year. As part of the agreement, Hansoh Pharma retains the option to either co-promote or independently commercialize HS-10535 within China, contingent on specific conditions. Eliza Sun, executive director of the Hansoh Pharma board, emphasized, "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." Additionally, in November 2023, AstraZeneca reached an exclusive licensing deal with Eccogene to develop an oral medication targeting obesity, type-2 diabetes, and other cardiometabolic disorders.
Furthermore, Amgen and Viking Therapeutics are pursuing their respective obesity drug developments..