Merck (MRK.US) announced on Wednesday that it has obtained the development, production, and commercialization rights for an experimental weight loss drug from Chinese pharmaceutical company Haosen Pharmaceutical, with a transaction value of up to 2 billion dollars.

The oral medication has not yet undergone human trials, but it increases Merck's chances of carving out a share of the weight loss drug market, with Analysts estimating that by the early 2030s, the overall market for weight loss drugs will be worth over 100 billion dollars annually.

According to the terms of the deal, Merck will pay Haosen an upfront payment of 0.11 billion dollars to obtain the global exclusive license for the development, production, and commercialization of HS-10535, with the possibility of additional payments totaling 1.9 billion dollars in installments and sales royalties. HS-10535 is an experimental oral drug aimed at an intestinal hormone known as GLP-1.

Merck stated that due to the transaction, the performance for the fourth quarter will include a pre-tax expense of 0.11 billion dollars, approximately 4 cents per share.