Merck Signs $2 Billion Deal for Obesity Drug

Merck has secured exclusive global rights to an experimental weight loss pill, HS-10535, from China's Hansoh Pharma in a deal potentially worth up to $2 billion. The oral drug, which is still in preclinical studies, targets GLP-1 receptors and aims to provide cardiovascular and metabolic benefits beyond just weight loss. Merck will pay an upfront fee of $112 million, with additional milestone payments up to $1.9 billion based on development and regulatory achievements. This move positions Merck to compete in the rapidly growing obesity drug market, projected to exceed $100 billion annually by the 2030s. Shares of Merck rose slightly following the announcement, reflecting investor interest in the deal's potential. The collaboration highlights the increasing competition among pharmaceutical companies to develop effective treatments for obesity.