Merck Secures $2 Billion Deal for Experimental Oral Weight Loss Drug from Hansoh Pharma

The agreement grants Merck exclusive global rights to develop and commercialize the GLP-1-targeting drug, which has yet to enter human trials.

Merck will pay $112 million upfront as part of the licensing deal with China-based Hansoh Pharma, with the potential for up to $1.9 billion in milestone payments.
The experimental drug, HS-10535, is an oral treatment targeting the GLP-1 hormone, similar to popular weight loss drugs like Wegovy, but has not yet begun human trials.
Merck aims to explore additional cardiometabolic benefits beyond weight loss, such as potential impacts on cardiovascular and diabetes outcomes.
The global obesity drug market is projected to reach $100 billion annually by the early 2030s, with growing competition among oral treatments from companies like Novo Nordisk, Eli Lilly, and Pfizer.
This deal follows a trend of Western pharmaceutical companies partnering with Chinese firms to develop GLP-1 drugs, including AstraZeneca's 2023 licensing agreement with Eccogene.