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Viking Therapeutics lower after Merck signs pact with Hansoh for GLP-1 drug
The Fly

Viking Therapeutics lower after Merck signs pact with Hansoh for GLP-1 drug

Shares of Viking Therapeutics (VKTX) are down $2.70, or 6%, to $44.00 in pre-market trading following Merck (MRK) and Chinese biopharmaceutical company Hansoh Pharma’s announcement earlier that they have entered into an exclusive global license agreement for HS-10535, an investigational preclinical oral small molecule GLP-1 receptor agonist. Under the agreement, Hansoh Pharma has granted Merck an exclusive global license to develop, manufacture and commercialize HS-10535. Hansoh Pharma may co-promote or solely commercialize HS-10535 in China subject to certain conditions. Merck will record a pre-tax charge of $112M, or 4c per share, to be included in GAAP and non-GAAP results in the Q4, the company noted. Viking Therapeutics’ VK2735 is a dual agonist of the glucagon-like peptide 1 and glucose-dependent insulinotropic polypeptide receptors being studied to treat metabolic disorders, including obesity. Eli Lilly (LLY) and Novo Nordisk’s (NVO) also currently market GLP-1 weight loss drugs.

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