Merck & Co. entered into a $700 million non‑refundable capital agreement with Blackstone Life Sciences to support the development of sacituzumab tirumotecan (sac‑TMT), an antibody‑drug conjugate targeting the TROP2 antigen expressed in multiple solid tumors.
The funding will cover a portion of the projected $1.5 billion development cost for sac‑TMT in 2026, enabling 15 global Phase 3 trials across six tumor types, including triple‑negative breast cancer, non‑small cell lung cancer, endometrial cancer, and others.
Under the terms, Blackstone will receive low‑to‑mid single‑digit royalties on net sales of sac‑TMT in Merck’s marketing territories once the drug receives U.S. regulatory approval for first‑line treatment of triple‑negative breast cancer, based on the TroFuse‑011 Phase 3 study. Merck retains full control over development, manufacturing, and commercialization decisions.
Merck’s CFO, Caroline Litchfield, said the partnership allows the company to accelerate its antibody‑drug conjugate pipeline while preserving capital for other oncology priorities, including the expansion of its ADC manufacturing facility in St. Louis, Missouri.
The agreement aligns with Merck’s strategy to diversify its oncology portfolio ahead of Keytruda patent expirations in 2028. Sac‑TMT has already received marketing authorization in China for certain TNBC and NSCLC indications, and U.S. approval would broaden its commercial reach.
Blackstone Life Sciences, a specialist in life‑science financing, will provide the capital and expertise to share the financial risk of high‑cost, high‑reward development programs. The deal is structured to support Merck’s goal of bringing multiple ADC candidates to market in the next five years.
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