Merck (NYSE:MRK) and Chinese biopharmaceutical company Hansoh Pharma (OTCPK:HNSPF) announced a global licensing deal on Wednesday to develop HS-10535, an oral GLP-1 receptor agonist targeted at weight loss and other cardio metabolic conditions.

Merck on Wednesday signed a deal worth up to $2 billion with Hansoh Pharma to develop and sell the Chinese biotech's experimental oral obesity drug that works similar to the popular weight-loss treatments Wegovy and Zepbound.

News of Merck’s licensing of Hansoh’s preclinical medicine pressured shares in Viking and other obesity drug developers seen as likely buyout targets.