Pharmaceutical company Merck & Co has introduced a fresh weight loss medication.
💊 ** mergeck nabs oral obesity drug rights for a potentially lucrative billion-dollar deal**
🔥 Pharmaceutical powerhouse Merck & Co has secured the global rights to a groundbreaking oral obesity drug, HS-10535, in a multibillion-dollar contract with Chinese biotech firm Hansoh Pharmaceuticals. The exclusive licensing agreement, announced on Wednesday, promises an upfront payment of $112 million, with additional milestone payments worth up to $1.9 billion.
💊 The Contender: HS-10535 versus Wegovy
Similar to Novo Nordisk's well-known weight loss injection Wegovy, HS-10535 belongs to the GLP-1 receptor agonist class but is administered orally. While HS-10535 is still in preliminary phases of development and years away from potential market release, Merck & Co aims to explore its potential for both weight loss and cardiometabolic benefits.
🎯 Merck Stakes Claim on the oral Drug Market
Merck's move positions them alongside other drug makers eager to provide patients with a convenient alternative to weekly injections, including Eli Lilly, Amgen, Pfizer, Structure Therapeutics, and Viking. However, analysts like Courtney Breen of Bernstein question the timing of Merck's entry as competitors like Lilly's Orforglipron are already well advanced in development.
🛂 Merck's Arsenal: Beyond HS-10535
In addition to its partnership with Hansoh, Merck is working on its in-house GLP-1 medication, Efinopegdutide, which tackles non-alcoholic fatty liver disease. Merck has openly declared its intent on capitalizing on opportunities for second- and third-generation obesity drugs, such as oral versions and therapies addressing obesity comorbidities.
🤝 A Flourishing Romance: Western Firms and Chinese Biotech
Merck's collaboration with Hansoh indicates a growing trend of Western pharmaceutical companies banking on Chinese biotech innovations. Notably, AstraZeneca purchased the rights for a Chinese weight loss drug from Eccogene last year.
🔍 The Intricacies of the Oral GLP-1 Market
Although the market for oral GLP-1 receptor agonist obesity drugs is highly competitive, it remains promising with numerous key elements shaping its destiny:
- Intense market competition and a bustling pipeline with more than 80 molecules in development globally.
- Expanding market size and growth, with the global GLP-1 receptor agonist market predicted to grow from about USD 28 billion in 2025 to over USD 63 billion by 2032, primarily due to obesity indications.
- Injectable GLP-1 agonists like Eli Lilly’s Tirzepatide and Novo Nordisk's Wegovy lead in clinical effectiveness and market sales, with combined sales exceeding USD 10.8 billion in 2024 and forecasted to nearly double by 2034.
🔥 Time to Turn the Tide: Can Oral GLP-1 Agonists Challenge Injectables?
Oral GLP-1 agonists aim to offer improved patient convenience and adherence while matching or even exceeding injectables' effectiveness and safety profiles. However, safety concerns and efficacy hurdles persist, posing significant challenges for competitors like Merck & Co looking to unseat established injectable drugs.
- Science has taken a significant step forward with Merck & Co's acquisition of global rights for the oral obesity drug HS-10535, a move that could potentially reshape the weight-management industry.
- This deal also highlights an emerging trend in the finance sector, as Western firms like Merck are increasingly investing in Chinese biotech innovations for potential billion-dollar business opportunities.
- As Merck prepares to launch HS-10535 and compete with existing injectable drugs like Wegovy, the health-and-wellness market is poised for change, with oral GLP-1 receptor agonists offering improved patient convenience and the potential to challenge the established injectable drugs' market share.
