Merck & Co. Inc. is making a high-stakes move in the cardiovascular drug market, announcing on Tuesday an exclusive licensing deal with Jiangsu Hengrui Pharmaceuticals Co. Ltd. The agreement, which sees Merck shelling out up to $2 billion, positions the company at the forefront of tackling a major global heart disease risk.

Big Money, Big Potential

Under the terms of the deal, Merck will pay Hengrui Pharma an upfront sum of $200 million, with the potential for an additional $1.77 billion in milestone payments tied to key regulatory, development, and commercial achievements.

At the heart of this deal is HRS-5346, an investigational oral small molecule targeting Lipoprotein(a) or Lp(a)—a notorious cardiovascular risk factor impacting roughly one in five adults worldwide. The drug is currently undergoing Phase 2 clinical trials in China.

"Elevated Lp(a) levels significantly increase the likelihood of atherosclerotic cardiovascular disease," said Dean Y. Li, president of Merck Research Laboratories. "HRS-5346 is a vital addition to our cardio-metabolic pipeline and strengthens our commitment to tackling this pressing global health issue."

Strategic Expansion with a Global Vision

Through the agreement, Merck secures exclusive rights to develop, manufacture, and commercialize HRS-5346 globally, except in Greater China.

Frank Jiang, executive vice president and chief strategy officer of Hengrui Pharma, emphasized the importance of the partnership. "Merck's deep expertise in cardiovascular care and its global reach will accelerate the development of HRS-5346, providing a potential new treatment option for millions at risk of atherosclerosis."

A Pattern of High-Profile Collaborations

This isn’t Merck’s first big bet on Chinese pharma. In 2022, the company struck a $9.5 billion partnership with Kelun-Biotech to develop a suite of investigational antibody-drug conjugates aimed at cancer treatment.

Regulatory Approval and Closing Timeline

The deal is expected to close in the second quarter of 2025, pending regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

Legal Teams Behind the Deal

Merck is being advised by a team from Gibson Dunn & Crutcher LLP, led by antitrust partner Steve Weissman.

Hengrui Pharma is represented by Cooley LLP, with partners Alan Tamarelli and Bill Christiansen leading the negotiations.