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.

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