China’s Hansoh Pharmaceutical Group Co., Ltd (HKG: 3692) has announced a significant global license deal with US pharmaceutical giant Merck, Sharp & Dohme (MSD; NYSE: MRK) concerning its investigational oral molecule, HS-10535, a GLP-1 receptor agonist.
Terms of the Agreement and Financial Implications
According to the agreement, Merck will secure exclusive global rights to develop, manufacture, and commercialize HS-10535. As part of the deal, Merck will pay Hansoh Pharma an initial payment of USD 112 million. Furthermore, Merck is committed to paying up to USD 1.9 billion in milestone payments linked to the development, regulatory approval, and commercialization of HS-10535, in addition to royalties on sales. This agreement underscores the significant potential of HS-10535 in the global market and the financial commitment Merck has to its success.
Commercialization Rights in China
The agreement also stipulates that Hansoh Pharma may have the opportunity to co-promote or solely commercialize HS-10535 in China, subject to certain conditions. This provision highlights the strategic importance of the Chinese market for the global success of HS-10535 and positions Hansoh Pharma as a key player in its domestic market.-Fineline Info & Tech
