Merck secured $700 million in non‑refundable capital from Blackstone Life Sciences to support the development of sacituzumab tirumotecan, an antibody‑drug conjugate that targets the TROP2 protein.
The agreement grants Blackstone low‑to‑mid single‑digit royalties on net sales if the drug receives U.S. approval for first‑line treatment of triple‑negative breast cancer, while Merck retains full control over development, manufacturing, and commercialization.
Sacituzumab tirumotecan, originally developed by Kelun‑Biotech, is in 15 global Phase 3 trials across six tumor types, including breast, endometrial, and lung cancers. It has Breakthrough Therapy Designation for non‑small cell lung cancer with EGFR mutations and is being evaluated for multiple indications.
The funding is intended to cover development costs through 2026 and accelerate progress toward regulatory approval. Merck’s recent third‑quarter 2025 results showed worldwide sales of $17.3 billion and GAAP net income of $5.8 billion, underscoring the company’s strong financial position and ability to invest in high‑potential assets.
Blackstone Life Sciences focuses on financing late‑stage clinical development of high‑potential products, targeting royalties on successful launches. The firm manages over $1.1 trillion in assets and has a high success rate of 85 % for Phase III products reaching approval, compared with the industry average of 48 %. The investment expands Blackstone’s portfolio and positions it to earn future royalties from a potentially blockbuster therapy.
The deal reflects Merck’s strategy to advance its pipeline without diluting equity and to manage financial risk amid competition from biosimilar Keytruda copies, while maintaining financial flexibility.
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