Merck Enters $2B License Agreement With China-Based Hengrui Pharma For Heart Disease Drug: Retail’s Unswayed

Merck & Co., Inc. (MRK) said on Tuesday that it has entered into an exclusive license agreement with China-based Jiangsu Hengrui Pharmaceuticals Co. for an investigational oral drug for heart disease called HRS-5346.

Under the agreement, Merck will have the exclusive rights to develop, manufacture, and commercialize HRS-5346 worldwide, excluding the Greater China region. The transaction is expected to close in the second quarter of this year, subject to approvals and other customary conditions.

Hengrui Pharma will receive $200 million upfront and be eligible to earn up to $1.77 billion in milestone payments and royalties on the drug's net sales if approved.

HRS-5346 is currently being evaluated in a Phase 2 clinical trial in China. It acts by inhibiting Lipoprotein(a) which can accumulate in blood vessel walls and result in heart attack, stroke and other cardiovascular diseases.

Merck on Tuesday said that it expects to record a pre-tax charge of $200 million or about $0.06 per share owing to the transaction, which will be included in the results of the quarter in which the transaction closes.

The company, headquartered in New Jersey, said earlier this month that it is looking to invest $8 billion in the U.S. by 2028.

Since 2018, it has already invested more than $12 billion in the country to expand manufacturing and research and development capabilities. The company also opened a $1 billion facility for vaccine manufacturing at its North Carolina site earlier this month.

On Stocktwits, retail investor sentiment about Merck dipped marginally within the ‘bearish’ territory (32/100) while message volume rose to ‘normal’ from ‘low’ levels over the past 24 hours.

MRK’s Sentiment Meter and Message Volume as of 12:20 p.m. ET on March 25, 2025 | Source: Stocktwits

However, a Stocktwits user expressed optimism about Merck’s share price rising in due time.

Merck shares are trading over 4% lower on Tuesday afternoon. The stock is down by over 10% this year and by nearly 30% over the past 12 months.

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