Merck, recognized as MSD outside the U.S. and Canada, has announced a funding arrangement with Blackstone Life Sciences to support the development of sacituzumab tirumotecan (sac-TMT). The investigational antibody-drug conjugate (ADC) targets trophoblast cell-surface antigen 2 (TROP2), a protein present on numerous cancer cells. Merck is currently conducting 15 global Phase 3 trials evaluating sac-TMT across six tumor types, including breast, endometrial, and lung cancers.
“This agreement positions Merck to harness the potential of sac-TMT, a promising ADC candidate targeting TROP2, while we continue to advance our broad and expansive pipeline,” said Caroline Litchfield, chief financial officer, Merck. “We are making important investments to drive patient impact and revenue growth, and to sustain our business for the future while remaining disciplined towards maintaining an appropriate financial profile.”
Under the terms of the funding agreement for sac-TMT, Blackstone will provide Merck with $700 million, non-refundable and subject to termination clauses in the agreement to cover a portion of sac-TMT development costs anticipated throughout 2026. In return, Blackstone may receive low-to-mid single-digit royalties on sac-TMT net sales across all approved indications in Merck’s marketing territories, contingent on U.S. regulatory approval for first-line treatment of triple-negative breast cancer based on TroFuse-011 trial results.
“Sac-TMT is an innovative asset that has the potential to improve patient care across many forms of cancer,” said Dr. Nicholas Galakatos, global head, Blackstone Life Sciences. Speaking of the funding agreement for sac-TMT, he said, “We are excited to be collaborating with Merck to realize the full value of this high priority product and contribute to our partner’s revenue growth by leveraging our scale capital and expertise.”
Sac-TMT is being developed under an exclusive license and collaboration agreement with Sichuan Kelun-Biotech Biopharmaceutical, a subsidiary of Sichuan Kelun Pharmaceutical. This arrangement remains unaffected by the Blackstone deal. Merck will continue to hold full decision-making authority over the development, manufacturing, and commercialization of sac-TMT, with Blackstone not receiving any ownership or control rights to the asset.
