Hansoh Pharmaceutical (03692.HK) Enters Global Exclusive Licensing Agreement with Merck for Oral GLP-1 Receptor Agonist HS-10535, Securing $112 Million Upfront Payment

Hansoh Pharma (03692) announced that on December 18, 2024, its wholly-owned subsidiaries, Shanghai Hansoh Biomedical Technology Co., Ltd. and Jiangsu Hengrui Pharmaceuticals Group Co., Ltd. (collectively referred to as “Licensor”), entered into a global exclusive license agreement with a wholly-owned subsidiary of Merck Sharp & Dohme LLC (MSD).

Under the licensing agreement, the licensor will grant the licensee the global exclusive license to develop, manufacture, and commercialize HS-10535, a preclinical oral small-molecule GLP-1 receptor agonist. The licensor will receive an upfront payment of $112 million and is eligible to receive up to $1.9 billion in milestone payments based on the product’s development, regulatory approval, and commercialization progress, as well as royalties based on product sales. Under specific conditions of the licensing agreement, the licensor may co-promote or exclusively commercialize the product in mainland China, the Hong Kong Special Administrative Region, and the Macao Special Administrative Region.

It is reported that the licensee is a wholly-owned subsidiary of Merck Sharp & Dohme LLC (MSD), a research-intensive biopharmaceutical company dedicated to the discovery and development of medicines, vaccines, and animal health products.

The Board believes that entering into the licensing agreement is in the best overall interests of the Company and its shareholders. The Company will also take this opportunity to maximize the scientific and commercial value of the Group's technology platform.