Merck enters R&D funding agreement with Blackstone for sac-TMT

Merck (MRK) announced that the company has entered into an agreement to receive funds managed by Blackstone Life Sciences (BX) for the development of sacituzumab tirumotecan, or sac-TMT, an investigational antibody-drug conjugate targeting trophoblast cell-surface antigen 2, a protein found on the surface of various cancer cells. Merck is currently evaluating sac-TMT in 15 global Phase 3 clinical trials spanning six tumor types, including breast, endometrial and lung cancers. Under the terms of the agreement, Blackstone will pay Merck $700M, which is non-refundable, subject to termination provisions provided for in the agreement, to fund a portion of the development costs for sac-TMT expected to be incurred throughout 2026. In return, Blackstone is eligible to receive low-to-mid single-digit royalties on net sales of sac-TMT across all approved indications in Merck’s marketing territories contingent upon receipt of regulatory approval in the U.S. for first-line treatment of triple-negative-breast cancer based on findings of the TroFuse-011 clinical trial. “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, CFO of 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.”