Merck (MRK) said Tuesday it has entered an exclusive licensing agreement with Jiangsu Hengrui Pharmaceuticals for HRS-5346, an oral lipoprotein(a) inhibitor in phase 2 trials in China for cardiovascular disease.

Under the deal, Merck will have global rights to develop, manufacture, and commercialize HRS-5346, excluding the Greater China region, with Hengrui receiving a $200 million upfront payment, potential milestone payments up to $1.77 billion, and royalties on sales, the companies said.

The transaction, subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other conditions, is expected to close in Q2, Merck added.

Merck expects to record a pre-tax charge of $200 million, or $0.06 per share, in the quarter the deal closes, the company said.