One of the world’s largest pharmaceutical companies, MSD, will pay up to $2 billion for the rights to the experimental drug HRS-5346 from China’s Jiangsu Hengrui Pharmaceuticals Co. for heart treatment. The deal is expected to be completed in the second quarter of 2025, pending the necessary approvals. This will be MSD’s second recent attempt to enter the Chinese market with a new drug, according to Bloomberg.

As part of the agreement, MSD will pay $200 million upfront for the development and commercialization of the Hengrui Pharma drug, which is currently in mid-stage human trials. Another $1.77 billion will be paid upon achieving certain milestones. Hengrui Pharmaceuticals Co. will also receive royalties from the net sales of HRS-5346 and will retain ownership rights for the Chinese market.

The deal follows MSD’s $2 billion agreement for licensing a potential obesity treatment method with Hansoh Pharmaceutical Group Co., announced in December 2024.

Source: GxP news, March 25, 2025.