Power Alley: Merck To Pay Up To $2 Billion, To China's Jiangsu Hengrui Pharmaceuticals For Cardiovascular Candidates...

As nations become richer, and their citizens consume more high fat foods, the natural progression is toward. . . later onset heart disease. And while that remains a primary concern in Western Europe and the US especially. . . China now faces the very same "post modern economy" problem.

So it makes sense that Merck would pay to develop this novel compound, and let this in-country company keep all rights in China, while Rahway gets an exclusive for rest of world. Here's all of that, from Fierce -- as ever:

. . .[Merck will pay upfronts of] $200 million to China’s Hengrui Pharma for a phase 2-stage lipoprotein(a) (Lp(a)) inhibitor.

In return for the ex-China rights to the drug, dubbed HRS-5346, Merck has also agreed to pay out up to $1.77 billion in milestone fees on top of tiered royalties should the therapy make it to market.

“Elevated blood concentrations of Lp(a) provides a well-documented risk factor for atherosclerotic cardiovascular disease, affecting as many as one in five adults globally,” Merck Research Laboratories President Dean Li, M.D., Ph.D., said in this morning’s release. “HRS-5346, an investigational oral small molecule inhibitor of Lp(a) formation, is an important addition that expands and complements our cardio-metabolic pipeline.”

Large drugmakers including Merck and Eli Lilly have turned to Chinese biotechs for deals that give them access to new drugs for a cheaper investment, analysts have said. . . .

Now you know. And honestly, I don't worry much about Xi's people ever interfering in these deals. They well-know that such meddling would kill the golden goose pipeline. And despite all the mindless bluster. . . Tangerine 2.0 will never impose meaningful tariffs on non-US manufactured life saving drugs, made by US companies overseas. He just won't be able to get it done. Onward, grinning.

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