Merck Makes a Bold $2 Billion Move into Oral Weight-Loss Drugs with Hansoh Deal
1min read Merck & Co. has announced a significant move in the burgeoning weight-loss drug market by acquiring exclusive global rights to an experimental oral medication, HS-10535, from China's Hansoh Pharmaceutical. This transaction, which could amount to as much as $2 billion, marks Merck's strategic entrance into the field of GLP-1 receptor agonists, with HS-10535 currently in preclinical stages.
The agreement grants Merck comprehensive global development, manufacturing, and commercialization rights, while Hansoh stands to receive an upfront payment of $112 million. Additionally, Hansoh may earn up to $1.9 billion in milestone payments contingent upon the successful development, regulatory approvals, and commercialization of the candidate drug. Royalties based on product sales will also be shared, and under particular circumstances, Hansoh could secure the right to co-promote or exclusively commercialize the drug in China.
This move positions Merck to compete in an increasingly competitive field targeting obesity, a condition associated with several health complications including type 2 diabetes and cardiovascular diseases. The shift towards oral administration, as opposed to injectable options like Wegovy and Zepbound, offers a significant advantage in terms of patient compliance.
Merck's initiative reflects a growing industry trend where pharmaceutical giants like Amgen and Roche are exploring similar therapies, with the potential market for weight-loss treatments projected to reach $150 billion by the early 2030s. This strategic pursuit emphasizes the potential cardiovascular and metabolic benefits beyond weight loss that GLP-1 therapies promise.
While HS-10535 remains in the early stages of testing, primarily within animal models, the collaboration exemplifies Merck's broader strategy to expand its portfolio with innovative therapies that could offer comprehensive benefits in metabolic health. The company also continues to advance its own GLP-1 candidate, efinopegdutide, focusing on metabolic-associated diseases.