Core Viewpoint - Suzhou Zejing Biopharmaceutical Co., Ltd. has signed a service agreement with Ares Trading S.A. (ATSA), a subsidiary of Merck KGaA, to grant ATSA exclusive marketing rights for recombinant human thyroid-stimulating hormone (rhTSH) in mainland China, excluding Hong Kong, Macau, and Taiwan [2][4]. Group 1: Agreement Details - The agreement was signed on June 5, 2025, and allows ATSA to act as the exclusive marketing service provider for rhTSH in mainland China [4]. - The total authorized amount under the agreement can reach up to RMB 250 million, with an initial payment of RMB 50 million due within 30 working days of the agreement's effective date, and a subsequent payment of RMB 200 million upon approval of the first indication for the product [2][9]. - The exclusive marketing service period for the product is set for 15 years from the effective date of the agreement [9]. Group 2: Product and Market Context - rhTSH is a biopharmaceutical product developed by the company, currently in the drug registration application phase, and is intended for use in treating thyroid conditions [5][6]. - The product is designed to stimulate iodine uptake and the synthesis and release of thyroid hormones, and it has a similar amino acid sequence to natural TSH [5]. - The product has not yet been marketed in China, while a similar product, Thyrogen, is already widely used for post-operative diagnosis and treatment of thyroid cancer [6]. Group 3: Counterparty Information - ATSA is a Swiss-registered company and a subsidiary of Merck KGaA, a global leader in life sciences and healthcare, with over 62,000 employees and a total sales revenue of €21.2 billion in 2024 [7]. - The company and its subsidiaries have no prior business dealings with ATSA, ensuring that this transaction does not constitute a related party transaction [7]. Group 4: Impact on the Company - The signing of this agreement aims to leverage the strengths of both parties to accelerate the commercialization of rhTSH post-approval, potentially leading to positive impacts on the company's current and future operating performance [12].