Merck (MRK) and Hansoh Pharma said Wednesday they have signed a global license deal under which Merck will develop, produce and commercialize HS-10535, an investigational oral GLP-1 receptor agonist.
Under the agreement terms, Merck will pay a $112 million upfront payment to Hansoh Pharma, while the Chinese biopharmaceutical company will also be eligible to receive up to $1.9 billion in milestone payments and royalties on sales.
Merck will report a $112 million pretax charge, or $0.04 per share, to be included in GAAP and non-GAAP results in Q4, according to the companies.
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