Pharmaceutical giant Merck & Co has entered into an exclusive global license agreement with China-based biopharma Hansoh Pharma for a preclinical oral small molecule glucagon-like peptide 1 receptor agonist (GLP-1RA) to treat obesity. The deal worth $112m includes upfront payment and milestone payments totaling up to $1.9bn.
As part of the partnership, Merck will take on global commercialization duties while Hansoh may co-promote or solely commercialize the asset in China. The drug is orally administered, providing an easier option for patients compared to subcutaneous injections.
The obesity market is growing rapidly at a 31.3% annual rate and is forecast to reach $37.1bn by 2031. Merck’s entry into this market comes as Eli Lilly’s oral GLP-1RA candidate has already produced positive Phase II results, while Pfizer is also developing a weight loss pill.
Merck believes the new therapy has potential to provide additional cardiometabolic benefits beyond weight reduction. The deal follows Merck’s recent acquisitions and partnerships aimed at enhancing its portfolio amid patent losses for blockbuster drug Keytruda.
Source: https://finance.yahoo.com/news/msd-makes-obesity-play-2bn-123239729.html