Merck Secures Global Rights to Promising Heart Disease Drug in $2 Billion Deal

Merck & Co. has signed an exclusive licensing agreement with China-based Jiangsu Hengrui Pharmaceuticals to develop, manufacture, and commercialize HRS-5346, an experimental oral drug targeting cardiovascular diseases. The deal, worth up to $2 billion, includes an upfront payment of $200 million, milestone payments of up to $1.77 billion, and royalties on future sales.

HRS-5346 is currently in Phase 2 clinical trials in China and is designed to inhibit Lipoprotein(a) [Lp(a)], a cholesterol-related lipoprotein linked to an increased risk of heart attacks and strokes. Elevated Lp(a) levels affect nearly 20% of adults worldwide, making it a critical area of research in cardiovascular treatment.

This agreement marks another major collaboration between U.S. pharmaceutical companies and Chinese firms to gain access to innovative treatments. Merck has previously entered similar deals, including a $2 billion licensing agreement for an obesity treatment from Hansoh Pharma and a $3.3 billion acquisition of an early-stage cancer drug from LaNova.

The transaction is expected to close in the second quarter of 2025, pending regulatory approvals. Upon completion, Merck plans to record a $200 million pre-tax charge for the quarter.