Merck and Hansoh Pharma Enter into Global Exclusive License Agreement for Investigational Oral GLP-1 Receptor Agonist HS-10535

ROSELAND, N.J., USA, December 18, 2024 – MSD (NYSE: MRK, MSD is the corporate name of Merck & Co., Inc. in Roseland, N.J., USA) and Hansoh Pharma, a Chinese biopharmaceutical company, today announced that they have entered into a global exclusive licensing agreement for HS-10535, an investigational preclinical oral small molecule GLP-1 receptor agonist.

Dr. Dean Y. Li, President of Merck & Co., Inc. Laboratories, stated: "We continue to enhance and supplement our robust pipeline through science-driven business development. With this agreement, we will evaluate the potential of HS-10535 based on our research experience in incretin biology, including its possibility of providing additional cardiometabolic benefits beyond weight loss."

According to the agreement, Hansoh Pharma grants MSD global exclusive license rights for the development, production, and commercialization of HS-10535. Hansoh Pharma will receive an upfront payment of $112 million and is eligible to obtain milestone payments of up to $1.9 billion based on the candidate drug’s development, regulatory approval, and commercialization progress. Additionally, Hansoh Pharma will also receive royalties based on product sales. Under specific conditions, Hansoh Pharma may co-promote or exclusively commercialize HS-10535 in China. MSD expects to incur pre-tax charges of $112 million, or $0.04 per share, which will be included in its 2024 fourth-quarter GAAP and non-GAAP financial results.

Ms. Sun Yuan, Executive Director of Hansoh Pharma's Board of Directors, stated: "We are pleased to announce the licensing agreement for HS-10535 with MSD. MSD is a recognized leader in the cardiometabolic disease field, and Hansoh Pharma is emerging as a new leader in the metabolic disease space. We believe that MSD’s expertise is crucial to accelerating the development of this promising asset for the benefit of patients worldwide."

About Hansoh Pharma

Hansoh Pharma is a leading innovation-driven pharmaceutical company in China, focusing on major disease treatment areas such as oncology, anti-infectives, central nervous system, metabolism, and autoimmune diseases. It is committed to improving the quality of human life through continuous innovation. Hansoh Pharma has consistently ranked among the top 100 global pharmaceutical companies and within the top three of China's best industrial enterprises in pharmaceutical R&D for many years. It is a key national high-tech enterprise and a national technology innovation demonstration enterprise. Hansoh Pharma was listed on the Hong Kong Stock Exchange in June 2019 (Stock Code: 03692.HK). For more information, please visitwww.hspharm.com。

About MSD

At MSD (the corporate name of Merck & Co., Inc. in New Jersey, U.S.), we unite in pursuit of a shared mission: harnessing the power of leading-edge science to save and improve lives around the world. For over 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We are committed to being a top research-intensive biopharmaceutical company — today, we stand at the forefront of research and development, delivering innovative solutions to advance the prevention and treatment of diseases in humans and animals. We have built a diverse and inclusive global workforce, conducting our operations responsibly each day to ensure a safe, sustainable, and healthy future for all people and communities. For more information, please visitwww.msd.com, and follow us on X (formerly Twitter), LinkedIn, and YouTube.

MSD Forward-Looking Statements

MSD is the trade name of Merck & Co., Inc., located in Rahway, New Jersey, USA (hereinafter referred to as "the Company"). This press release contains "forward-looking statements" made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The content herein is based on the current views and expectations of the Company’s management and is subject to significant risks and uncertainties. MSD does not guarantee that its investigational products will receive the necessary regulatory approvals or achieve commercial success. If underlying assumptions prove inaccurate, or if risks or uncertainties arise, actual results may differ materially from those anticipated in the forward-looking statements.

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