Under the agreement, Hansoh Pharma has granted Merck & Co. an exclusive global license to develop, manufacture and commercialize HS-10535. Hansoh Pharma will receive an upfront payment of $112 million and is eligible to receive up to $1.9 billion in milestone payments associated with the development, regulatory approval and commercialization of the candidate, as well as royalties on sales. Hansoh Pharma will have the right to co-promote or solely market HS-10535 in China subject to certain conditions.

Dean Y. Li, president, Merck Research Laboratories, said: “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.”

“Hansoh Pharma is becoming an emerging leader in metabolic diseases, and we see Merck’s expertise and capabilities as key to accelerating the development of this promising asset for patients worldwide,” added Eliza Sun, executive director of Hansoh Pharma’s board.