Merck Shells Out $2 Billion to Chinese Pharma for Heart Drug: Major Deal Alert!

MEXICO CITY (apro) – Merck & Co., a leading global pharmaceutical company, has reached an agreement with Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui Pharma) to acquire, for up to $2 billion, the exclusive rights to an experimental heart disease drug.

The U.S.-based company has turned to Chinese developments for the second time to secure a promising new drug, which is currently in the middle stage of human clinical trials.

Hengrui Pharma will receive an initial payment of $200 million and will give Merck & Co. the exclusive rights to develop, manufacture, and market the medication HRS-5346 globally, with the exception of China. Merck has committed an additional $1.77 billion tied to regulatory and commercial milestones, plus royalties on sales.

“We believe Merck’s clinical expertise and global reach will help expedite the development of HRS-5346 and potentially provide more patients with an additional option to reduce their risk of atherosclerosis,” stated Dr. Frank Jiang, Executive Vice President and Chief Strategy Officer at Hengrui Pharma, according to Merck.

The completion of the proposed transaction is contingent upon the approval of the Hart-Scott-Rodino Antitrust Improvements Act and other conditions. The transaction is expected to close in the second quarter of 2025, Merck & Co. announced in a statement.

The drug HRS-5346, developed by Hengrui Pharma, functions as a lipoprotein(a) inhibitor, a blood protein that, when elevated, is a risk factor for cardiovascular diseases. Around 1.4 billion people globally have elevated levels of lipoprotein(a), according to Merck.

Why is lipoprotein(a) associated with cardiovascular diseases?

Lipoprotein(a) is produced in the liver and transports cholesterol, fats, and proteins into the blood. It can accumulate in the walls of blood vessels, forming atherosclerotic plaques, similarly to LDL cholesterol, which tends to build up in the arteries.

The atherosclerotic plaques formed by lipoprotein(a) can restrict blood flow to vital organs and lead to strokes, heart attacks, or other cardiovascular diseases.

“HRS-5346, an investigational oral small molecule inhibitor of Lp(a) formation, is an important addition that broadens and complements our cardiometabolic product line,” said Dr. Dean Y. Li, President of Merck Research Laboratories.

The partnership with Hengrui Pharma marks the second such collaboration that the pharmaceutical giant Merck & Co. has entered into with a Chinese company. In December 2024, a $2 billion deal was announced to license a potential obesity treatment from Hansoh Pharmaceutical Group Co.

This reflects a trend where global pharmaceutical companies are turning to China to supplement their production lines, given the biotechnological development in the Asian nation, which offers new medications at competitive prices.