Germany-based Merck KGaA (NYSE: MRK) has announced the signing of a strategic collaboration deal with China’s Jiangsu Hengrui Medicine Co., Ltd (SHA: 600276). This agreement grants Merck development, manufacturing, and commercial rights to the next-generation PARP1 inhibitor HRS-1167 for all global territories outside of China. Additionally, Merck has an option to take on the same rights to Hengrui’s Claudin-18.2-targeted antibody drug conjugate (ADC) candidate SHR-A1904.
Deal Terms and Financials
Under the deal terms, Hengrui will receive an upfront payment of EUR 160 million (USD 170 million), with further regulatory and sales-based milestone payments potentially totaling EUR 1.4 billion (USD 1.5 billion). This substantial investment underscores Merck’s commitment to advancing innovative oncology treatments.
Complementary Pipeline and Technology
Merck also has the option to co-promote both drugs in China, expanding its market reach. If Merck exercises the option for the ADC SHR-A1904, it would complement Merck’s existing pipeline, which includes M9140, an in-house CEACAM5-targeted ADC in Phase I for colorectal cancer. Hengrui’s candidate is differentiated by its linker and payload technologies, offering a unique approach to cancer treatment.-Fineline Info & Tech
