Freshfields advises Merck KGaA on its license agreement with Jiangsu Hengrui for the exclusive commercialization right of SHR-7280, an oral GnRH receptor antagonist in the field of medically assisted reproduction in the People’s Republic of China (for purposes of this License Agreement, excluding Hong Kong SAR, Macau SAR, and Taiwan). Under the terms of the agreement, Merck will pay Hengrui an upfront payment of €15 million. Additionally, Hengrui is entitled to receive milestone payments for the licensed product and a double-digit percentage royalty of annual net sales in the licensed territory. The agreement also includes the right of first negotiation for global expansion cooperation for the product.

This collaboration follows the previous partnership between Merck and Hengrui on the PARP1 inhibitor HRS-1167, marking another joint effort in innovative drug development. Freshfields advised Merck on its previous collaboration with Hengrui on HRS-1167 as well.

The Freshfields team was led by partner Philipp Dohnke and counsel Ya Ma, supported by associate Yichen Xing. Our China team particularly advised on the Chinese regulatory aspects of the transaction.