Hengrui inks $1.97bn deal with Merck for HRS-5346

Jiangsu Hengrui Medicine (SSE:600276) announced a licensing agreement with Merck Sharp & Dohme (MSD) for its lipoprotein(a) [Lp(a)] oral small molecule project, HRS-5346. Under the terms, Hengrui will receive a $200 million upfront payment from MSD, with the potential for up to $1.77 billion in milestone payments related to development, regulatory approvals, and commercialization. In addition, Hengrui will receive tiered royalties on sales of HRS-5346 outside of Greater China. HRS-5346, currently in Phase II clinical trials in China, is a potential treatment for elevated Lp(a), a genetically determined risk factor for cardiovascular disease affecting an estimated 1.4 billion people globally. The deal, subject to regulatory approvals, is expected to close in the second quarter of 2025.