Merck & Co Inc MRK and Jiangsu Hengrui Pharmaceuticals Co., Ltd on Tuesday entered into an exclusive license agreement for HRS-5346, an investigational oral small molecule Lipoprotein(a), or Lp(a), inhibitor currently being evaluated in a Phase 2 clinical trial in China.
Lipoprotein (a), or Lp(a), is a type of lipoprotein produced in the liver that carries cholesterol, fats, and proteins in the blood.
Also Read: Pharmaceutical Firms Say UK Investment Is ‘Unlikely’ Unless Payment Levy Is Adressed
Lp(a) can accumulate in blood vessel walls, forming atherosclerotic plaques similar to LDL cholesterol. These plaques can limit blood flow to vital organs and result in conditions such as heart attack, stroke, and other cardiovascular diseases.
Under the agreement, Hengrui Pharma has granted Merck exclusive rights to develop, manufacture, and commercialize HRS-5346 worldwide, excluding the Greater China region.
Hengrui Pharma will receive an upfront payment of $200 million and is eligible to receive milestone payments associated with certain development, regulatory and commercial milestones up to $1.77 billion and royalties on net sales of HRS-5346 if approved.
The transaction is expected to close in the second quarter of 2025.
Merck expects to record a pre-tax charge of $200 million, or approximately $0.06 per share, to be included in GAAP and non-GAAP results in the quarter the transaction closes.
Price Action: MRK stock is down 1.82% at $90.63 at the last check Tuesday.
Read Next:
Photo: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.