Yesterday, Merck and Hansoh Pharma each issued announcements stating that Merck & Co. has licensed the global rights to Hansoh's small molecule oral GLP-1 agonist drug HS-10535 for an upfront payment of $112 million and a total deal value of up to $2.012 billion. CurrentlyHS-10535 Still in the preclinical stage,Under certain conditions of the licensing agreement, Hansoh may co-promote or exclusively commercialize the product in China in the future.
Dean Li, President of Merck Research Laboratories, said in a statement: "Our goal is to leverage our experience in incretin biology to evaluate HS-10535 and itsThe Potential to Provide Additional Cardiometabolic Benefits Beyond Weight Loss." A pre-tax charge of $112 million (equivalent to $0.04 per share) will be reflected in the company's GAAP and non-GAAP results for Q4 2024.BMO Capital Markets analysts wrote in a note to investors on Wednesday that the collaboration with Hansoh Pharma "will likely be viewed by the investment community as a positive." However, the analysts questioned whether Merck should pursue more mature assets.BMO wrote:"Although Merck has unlocked value through today's deal, given the intense competition in this field, we doubt whether this is the right deal."”The acquisition of Hansoh Pharma's portfolio aligns with Merck's strategy in the obesity field, according to CEO Robert Davis.Merck & Co.Will Focus on Small Molecule Oral Drugs, Not Injectable Peptide Therapies。Davis made the remarks at the 45th Goldman Sachs Healthcare Conference held in June, and pointed outSilentShadong"Very focused on second- and third-generation opportunities." Davis added,SilentShadongAlso hopes to develop its GLP-1 niche market through therapies that offer other health benefits in addition to weight loss.On the other hand, VikingTherapeutics' stock price plummeted 18% to $38.28. The stock price of Structure Therapeutics, which is also dedicated to the development of weight loss drugs, fell by 11.4%.Merck & Co.Not only represents a powerful new competitor in the obesity race,Investors may also see a potential acquirer being removed from the purchase list.Viking Therapeutics is developingGLP-1/GIPR AgonistVK2735，Can bothMouthTakeAlsoCan be used as an injectionAgent to promote weight loss.MechanisticallyWith Eli LillyThe tirzepatideThe same,But VikingA drug with a lower dosing frequency is under development.The drug, and stated that its injectable can be administered once a month.William Blair analyst Andy Hsieh said: "Based on our conversations with customers,Merck & Co. is one of the most likely companies to acquire Viking Therapeutics.Therefore, it is understandable that Viking's stock experienced a sell-off today. However, we believe that the licensing agreement will not hinder Merck from expanding its presence in the obesity sector through further external business development activities."Hsieh also pointed out that obesity is a complex and multifaceted disease,"A single preclinical asset is unlikely to fully address unmet medical needs."”This means that Merck can also acquire other potential weight-loss drugs, refocusing its attention on Viking.He said:"We believe that today's deal solidifies Merck's tangible interest in the obesity field and may become a catalyst for the growth of this brand's business through additional deals."”The number of participants taking oral GLP-1 is increasing.In 2023, Roche invested $2.7 billion to acquire Carmot Therapeutics, gaining access to its series of experimental weight-loss drugs, including an oral GLP-1 targeted drug. By the end of 2023, AstraZeneca obtained global rights to another weight-loss drug from Eternity Biopharma, including a prepayment of $185 million and milestone payments of up to $1.83 billion as well as tiered royalties.Eli Lilly and Pfizer have also entered this field, with Pfizer still trying despite setbacks.Welcome to follow and share! All articles in this official account can be freely reprinted as long as the source is acknowledged.
