America will rule the medical world with Chinese medicine!
American pharmaceutical company Merck has signed a major agreement with China's Jiangsu Hengrui Pharmaceuticals on Tuesday. Under this deal, Merck has got global rights on a new heart disease drug HRS-5346. The total value of this deal is 2 billion dollars, about 16,700 crores rupees.
What is this new drug?
HRS-5346 is an oral drug that reduces a protein called Lipoprotein(a) [Lp(a)]. Let us tell you, Lp(a) at high levels increases the risk of heart diseases and stroke. 1 in every 5 people around the world is affected by it. This drug is currently undergoing Phase 2 clinical trials in China.
Key points of the deal
Merck has got the exclusive right to develop, manufacture and sell this drug worldwide (except China, Hong Kong, Macau and Taiwan). Hengrui Pharma will get an advance amount of 200 million (about Rs 1,670 crore). If the drug is approved, Heng Rui can get an additional payment of up to 1.77 billion (about Rs 14,800 crore). Apart from this, royalty will also be available on the sale of the drug.
What do experts say?
Dr. Dean Y. Lee, President of Merck Research Labs says on this report, "Lp (a) is a major risk factor for heart diseases. This drug will strengthen our cardio-metabolic pipeline." At the same time, Dr. Frank Jiang of Hengrui Pharma says, "This partnership with Merck will accelerate the development of HRS-5346 and give a new option to the patients."
What will happen next?
This deal is dependent on US antitrust law (Hart-Scott-Rodino Act) and other conditions. The deal is expected to be completed by the second quarter of 2025. Merck said that due to this deal, it will have to show a pre-tax charge of $ 200 million, which will affect its earnings. Let us tell you, cases of cardiovascular disease are increasing rapidly all over the world. The market for Lp (a) targeted drugs is big and Merck wants to take advantage of it. Chinese pharma companies are now coming forward in global research.
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