(RTTNews) - Merck & Co., Inc. (MRK), Wednesday announced that the company has entered into an exclusive global license deal with China-based Hansoh Pharma to develop, manufacture and commercialize HS-10535, an investigational preclinical oral small molecule GLP-1 receptor agonist.
The company also intends to evaluate HS-10535 and its potential to provide additional cardiometabolic benefits beyond weight reduction.
Under the terms of the deal, Hansoh Pharma will receive an upfront payment of $112 million, milestone payments of upto $1.9 billion, and royalties on sales.
Meanwhile, Merck will record a pre-tax charge of $112 million, or $0.04 a share, to be included in GAAP and non-GAAP results in the fourth quarter of 2024.
During the pre-market hours, Merck's stock is trading at $101.35, up 1.29 percent on the New York Stock Exchange.
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