Merck's $2 Billion Bet on Oral Lipid-Lowering Drug Highlights Growing Interest in Lp(a) Inhibitors

Merck has announced a significant partnership with Chinese biotech company Jiangsu Hengrui, committing nearly $2 billion to develop an oral lipid-lowering drug. This move underscores the pharmaceutical industry's increasing focus on lipoprotein(a) [Lp(a)] inhibitors and strengthens the trend of major companies collaborating with Chinese firms for innovative therapies.

Merck's Strategic Investment in Cardiovascular Care

Merck is set to pay $200 million upfront to Jiangsu Hengrui for the rights to develop HRS-5346, an investigational small-molecule drug targeting Lp(a). The agreement includes potential additional payments of up to $1.77 billion tied to developmental, regulatory, and commercial milestones. Hengrui will retain rights to the Greater China region and receive royalties on net sales if the drug receives regulatory approval.

Dean Li, president of Merck Research Laboratories, described HRS-5346 as an "inhibitor of Lp(a) formation." The molecule is currently undergoing Phase II trials in China, with Merck remaining tight-lipped about specific development plans for the asset.

The Rising Importance of Lp(a) Inhibitors

Lipoprotein(a) has emerged as a critical target in cardiovascular medicine, with elevated levels associated with increased risk of adverse cardiovascular outcomes. Merck estimates that approximately 1.4 billion people worldwide have heightened Lp(a) levels, highlighting the potential market for effective treatments.

Several pharmaceutical companies are now actively pursuing Lp(a) therapies:

1. AstraZeneca partnered with CSPC Pharmaceutical Group in October 2024, investing $100 million upfront with up to $1.92 billion in potential milestones for YS2302018, an oral small-molecule Lp(a) disruptor.

2. Eli Lilly is developing muvalaplin, an oral candidate that showed promising mid-stage results in November 2024. At a 60-mg dose, muvalaplin demonstrated an 81.7% decrease in Lp(a) levels compared to placebo, leading analysts to suggest it has "megablockbuster potential."

Trend of Western Pharma Companies Partnering with Chinese Firms

Merck's collaboration with Hengrui is part of a broader industry trend of major pharmaceutical companies seeking partnerships with Chinese biotechs. Recent examples include:

• AstraZeneca's two Chinese collaborations announced last week: one with Harbour BioMed for next-generation multispecific antibodies, and another with Syneron Bio for macrocyclic peptides.

• Roche's January 2024 licensing deal with Innovent, involving an $80 million upfront payment and up to $1 billion in milestones for a DLL3-targeted antibody-drug conjugate (ADC).

• GSK's partnership with DualityBio, with a potential $1 billion investment to develop an ADC for an undisclosed gastrointestinal cancer indication.

These collaborations highlight the growing recognition of Chinese biotechnology firms as sources of innovative therapies and potential partners in global drug development efforts.