Merck has announced a significant acquisition in the emerging weight loss drug market, purchasing a potential drug for up to $2 billion. The agreement grants Merck exclusive global rights to develop, produce, and commercialize the experimental oral drug HS-10535, targeting the GLP-1 receptor, from Chinese pharmaceutical company Hansoh Pharma.
Merck will pay an initial $112 million upfront, with potential milestone payments reaching $1.9 billion. The news impacted the stock prices of two biotech firms developing weight loss drugs, Viking Therapeutics Inc. and Structure Therapeutics Inc., causing them to drop by 11% and 13%, respectively, as investors speculated about the implications of Merck's deal. Merck's stock remained stable.
