And that's why Merck could credibly become the next big weight-loss stock. Before you rush to go buy shares of Merck, appreciate two things about its prospects of becoming a heavyweight in weight loss.

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.

Merck & Co. snagged a potential drug in the burgeoning market for obesity medications in a deal worth as much as $2 billion.

Merck announced a weight loss drug deal Wednesday with China-based Hansoh worth up to $2 billion for the pill code-named HS-10535. It includes a $112 million licensing rights payment for global sales outside China.