Hengrui Medicine Enters into Exclusive Licensing Agreement with Merck KGaA for Oral GnRH Receptor Antagonist SHR7280

Zhitong Finance APP reported that Hengrui Pharma (600276.SH) announced it has reached an agreement with Merck KGaA, Darmstadt, Germany ("Merck KGaA" for short), to grant a paid license for the SHR7280 oral GnRH receptor antagonist project to Merck KGaA.

The financial terms of this transaction include: 1. Upfront Payment: Merck KGaA will pay Hengrui Pharma an upfront fee of 15 million euros. 2. Milestone Payment: After the product receives approval from the Chinese regulatory authority, Hengrui Pharma is eligible to receive certain milestone payments. 3. Sales Royalties: Merck KGaA will pay Hengrui Pharma royalties in the double-digit percentage of actual annual net sales.

The announcement stated that Merck KGaA is the largest company in the global market, including the Chinese market, in the field of assisted reproduction. The signing of this agreement will help accelerate the commercialization process of the SHR7280 product in the Chinese market and also has the potential to simultaneously expand the product's overseas markets, providing high-quality treatment options for patients worldwide. The company adheres to a dual focus on independent research and development as well as open collaboration, strengthening international cooperation on the basis of endogenous growth to achieve rapid transformation of R&D results. By leveraging leading international partners to cover both domestic and overseas markets, the company aims to maximize product value and enable its innovative products to serve patients globally.