Hengrui Pharma(SH:600276) Peng Pai Xin Wen·2025-03-25 14:04Core Insights - Jiangsu Hengrui Medicine Co., Ltd. has signed a collaboration agreement with Merck to license its oral small molecule drug targeting lipoprotein(a) (HRS-5346) for a payment of $200 million upfront [3][4] - The agreement allows Merck exclusive rights to develop, manufacture, and commercialize HRS-5346 outside Greater China, with potential milestone payments reaching up to $1.77 billion and additional sales royalties based on performance [3][4] - HRS-5346 is currently undergoing Phase II clinical trials in China and targets elevated Lp(a) levels, which are linked to cardiovascular diseases [4][5] Financial Implications - The total potential revenue for Hengrui from this collaboration could approach $2 billion, including upfront payments, milestone payments, and sales royalties [3][4] - Hengrui has previously engaged in 12 licensing deals since 2018, totaling approximately $12 billion, with upfront payments around $400 million [4] Strategic Importance - This partnership is expected to enhance Hengrui's international market presence and improve its innovative brand and overseas performance [5] - The collaboration aligns with Hengrui's strategy of balancing in-house development with external partnerships to accelerate the global reach of its innovative products [5]