Merck inks deal for new cardiovascular drug candidate

RAHWAY, N.J. - Merck & Co., Inc. (NYSE: MRK), a global healthcare leader, has announced an exclusive licensing agreement with Jiangsu Hengrui Pharmaceuticals Co., Ltd. (Hengrui Pharma), a company focused on innovative pharmaceuticals. The deal grants Merck the rights to develop, manufacture, and commercialize HRS-5346, an investigational Lipoprotein(a) inhibitor, globally excluding the Greater China region.

HRS-5346 is currently in a Phase 2 clinical trial in China and targets Lipoprotein(a), a genetically determined and independent risk factor for atherosclerotic cardiovascular disease, which affects an estimated 1 in 5 adults worldwide.

Under the terms of the agreement, Hengrui Pharma will receive an upfront payment of $200 million from Merck, representing a small fraction of Merck’s robust annual revenue of $64.17 billion. Additionally, Hengrui Pharma is eligible for up to $1.77 billion in development, regulatory, and commercial milestone payments, along with royalties on net sales, pending the drug’s approval. With a strong P/E ratio of 13.6 and consistent dividend payments for 55 consecutive years, InvestingPro data reveals Merck’s solid financial foundation for such strategic investments.

The transaction, which is expected to close in the second quarter of 2025, is contingent on approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. Merck anticipates recording a pre-tax charge of $200 million, or about $0.06 per share, in the quarter the transaction closes, affecting both GAAP and non-GAAP results.

Dr. Dean Y. Li, president of Merck Research Laboratories, highlighted the significance of the agreement, stating that HRS-5346 could be a valuable addition to Merck’s cardio-metabolic pipeline. Dr. Frank Jiang, Executive Vice President and Chief Strategy Officer of Hengrui Pharma, expressed optimism that Merck’s clinical expertise and global reach could expedite the development of HRS-5346, potentially offering patients an additional means to mitigate the risk of atherosclerosis.

This strategic partnership aligns with Merck’s long-standing commitment to addressing cardiovascular diseases and Hengrui Pharma’s dedication to developing high-quality medicines for unmet clinical needs. For deeper insights into Merck’s financial health and growth potential, including exclusive ProTips and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

The information in this article is based on a press release statement.

In other recent news, Merck & Co. reported its financial results for the full year 2024, showing a modest increase in net sales and a significant boost in operating cash flow. Net sales reached €21.16 billion, marking a 0.8% increase year-over-year, while operating cash flow surged by 21.2% to €4.59 billion. In a strategic move to enhance its manufacturing capabilities, Merck has inaugurated a new $1 billion vaccine manufacturing facility in Durham, North Carolina. This facility is part of Merck’s broader commitment to bolster U.S. production and research development.

Additionally, Merck received a ratings upgrade from Moody’s Ratings, moving to Aa3 from A1, reflecting confidence in the company’s ability to manage long-term pressures and maintain strong financial performance. The upgrade applies to several of Merck’s unsecured notes and credit facilities. In legal news, Merck successfully defended itself in a significant litigation concerning its Gardasil vaccine, with a U.S. District Judge dismissing over 200 cases related to alleged side effects. The decision underscores the legal protections for vaccine manufacturers when allegations lack robust scientific evidence.

These developments are part of Merck’s ongoing efforts to maintain a strong market position and financial stability. As the company navigates industry challenges, it continues to focus on innovation and operational efficiency to support future growth.

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