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Merck Lands Deal for Experimental Weight Loss Pill from Hansoh Pharma for Up to $2 Billion
Merck has secured the rights to an experimental weight loss pill from Chinese drugmaker Hansoh Pharma in a deal worth up to $2 billion. The oral drug, called HS-10535, has not yet entered human trials, but it targets the gut hormone GLP-1, similar to popular weight loss drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Ozempic.
Under the deal, Merck will pay Hansoh $112 million upfront and has the potential to make an additional $1.9 billion in milestone payments and royalties on sales. The company will also assume responsibility for developing, manufacturing, and commercializing the drug globally.
Merck’s CEO Rob Davis has sought to capitalize on the growing obesity drug market, which is expected to be worth more than $100 billion by the early 2030s. The company is racing against other major drugmakers like Pfizer and Roche to develop more convenient obesity pills that can compete with existing blockbuster injections.
Dean Li, president of Merck Research Laboratories, said the oral drug has “potential to provide additional cardiometabolic benefits beyond weight reduction.” The company believes the drug could demonstrate benefits beyond weight loss, such as cardiovascular and diabetes outcomes, and potentially even fatty liver disease benefits.