Merck strikes €1.4bn deal with Hengrui Pharmaceuticals for next-gen oncology treatments

In a major advancement in cancer treatment, Merck, a frontrunner in science and technology, has declared a strategic collaboration with Jiangsu Hengrui Pharmaceuticals Co. Ltd. This significant partnership focuses on an exclusive license globally (excluding China) to advance, produce, and market Hengrui’s novel and potent PARP1 (poly (ADP-ribose) polymerase 1) trapping inhibitor, HRS-1167. Furthermore, the deal encompasses an option for an exclusive global license (outside China) for developing and commercializing Hengrui’s Claudin-18.2 antibody-drug conjugate (ADC) SHR-A1904. Significantly, Merck gains the opportunity to co-promote both these assets within China.

As part of the agreement’s financial details, Merck commits to an upfront payment of €160 million to Hengrui. This arrangement further includes milestone payments linked to specific development, regulatory, and commercial achievements, alongside tiered royalties on Merck’s net sales. The total potential payments could soar up to a staggering €1.4 billion.

Danny Bar-Zohar, Global Head of Research & Development and Chief Medical Officer for Merck’s Healthcare business, remarked, “This partnership with Hengrui fully aligns with both our external innovation ambition and our oncology research and development strategy by diversifying our robust internal pipeline in our focus areas of DNA damage response inhibition and antibody-drug conjugates.” He added, “The synergies of these assets with our portfolio offer broad potential for development and the opportunity to advance more therapeutic options for patients with difficult-to-treat cancers. We look forward to leveraging the significant expertise of Hengrui and our strong collaboration ahead.”

HRS-1167, with its encouraging clinical activity and potential in Phase I trials, promises to be a significant step forward compared to first-generation PARP inhibitors. Its selectivity and differentiated safety profile may broaden its therapeutic impact in both existing and new indications. Merck’s interest in expanding the DNA damage response (DDR) inhibitors, particularly in combination with other anticancer therapies, highlights its commitment to innovative cancer treatments.

Should Merck opt to develop SHR-A1904, this drug would enhance Merck’s internal preclinical and clinical ADC portfolio, including their first ADC, M9140, currently under Phase Ia/b study for metastatic colorectal cancer. Frank Jiang, Chief Strategy Officer of Hengrui Pharma, expressed enthusiasm about the partnership: “Given the high unmet need in oncology, we are excited to work closely with Merck to bring Hengrui’s innovations to cancer patients worldwide,” and added that this collaboration marks a critical step in Hengrui’s global journey.