Hengrui Pharma(SH:600276) Huan Qiu Lao Hu Cai Jing·2025-03-26 03:40Core Viewpoint - Heng Rui Medicine has signed a $1.97 billion licensing agreement with Merck for its Lp(a) oral small molecule project, HRS-5346, granting Merck exclusive rights for development, production, and commercialization outside Greater China [1][2]. Company Summary - The agreement includes an upfront payment of $200 million from Merck, with potential milestone payments not exceeding $1.77 billion, plus sales royalties based on net sales of HRS-5346 after market launch, totaling at least $1.97 billion for Heng Rui Medicine [1][2]. - HRS-5346 is currently undergoing Phase II clinical trials in China and has the potential to reduce Lp(a) levels in the blood by over 80%, addressing a global patient population of 1.4 billion suffering from cardiovascular diseases linked to elevated Lp(a) [1][2]. - Heng Rui Medicine has been actively pursuing overseas licensing as part of its international expansion strategy, with 13 innovative drugs already licensed abroad [2]. Industry Summary - In 2024, the total upfront payments for overseas licensing in China's biopharmaceutical industry are projected to reach $4.94 billion, surpassing the $3.77 billion in financing for innovative drug research and development in the first year [3]. - Upfront payments provide direct funding for research and development, reducing reliance on equity financing for pharmaceutical companies [3].