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 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.

Merck threw its hat into the obesity race on Wednesday, inking a deal worth up to $2.01 billion with Hansoh Pharma for its weight-loss drug.

Merck & Co – known as MSD outside the US and Canada – will be gaining exclusive global rights to Hansoh Pharma’s preclinical GLP-1 candidate in a deal worth over $2bn. The agreement gives Merck a global licence to develop,

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

U.S. drugmaker Merck on Wednesday signed a deal worth up to $2 billion with Hansoh Pharmaceuticals to develop and commercialize the Chinese biotech's experimental obesity drug.

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