07:21 AM EST, 12/18/2024 (MT Newswires) -- Merck ( MRK ) and Hansoh Pharma said Wednesday they have signed a global license deal under which Merck ( MRK ) will develop, produce and commercialize HS-10535, an investigational oral GLP-1 receptor agonist.

Under the agreement terms, Merck ( MRK ) will pay a $112 million upfront payment to Hansoh Pharma, while the Chinese biopharmaceutical company will also be eligible to receive up to $1.9 billion in milestone payments and royalties on sales.

Merck ( MRK ) will report a $112 million pretax charge, or $0.04 per share, to be included in GAAP and non-GAAP results in Q4, according to the companies.