Merck & Co Inc (NYSE:MRK, ETR:6MK) has sought a potential weight loss drug candidate through a deal worth up to $2 billion with China’s Hansoh Pharma.
US-based Merck will get exclusive rights to develop, manufacture and sell the oral obesity drug, HS-10535, globally under the agreement, it announced on Wednesday.
Some $112 million will be paid upfront, with the rest conditional on development milestones and regulatory approval for the experimental drug.
HS-10535 will add to Merck’s weight loss portfolio, which already includes glucagon and GLP-1 hormone agonist efinopegdutide for fatty liver disease.
Hansoh’s drug places Merck in contention to develop a weight loss pill as firms seek orally administered options in the hope they will be more convenient than weekly jabs.
“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,” Merck Research Labs president Dean Li commented.