In a move set to reshape cancer drug financing, Merck & Co. announced Tuesday that it will receive $700 million from Blackstone Life Sciences to accelerate development of sacituzumab tirumotecan, an experimental antibody-drug conjugate (ADC) targeting TROP2, a protein prevalent in multiple aggressive cancers.
The landmark collaboration marks a growing intersection between private equity and biopharma innovation, as Merck taps external funding to advance one of its most promising oncology candidates.
High-Stakes Bet on TROP2
Under the agreement, Blackstone, the life-sciences investment arm of private equity titan Blackstone Inc., will earn “low-to-mid single-digit” royalties on global sales of sac-TMT—but only if the therapy secures U.S. Food and Drug Administration (FDA) approval for first-line treatment of triple-negative breast cancer, one of the most lethal and treatment-resistant forms of the disease.
The financing will cover a significant portion of development costs through 2026, according to Merck’s announcement.
“This agreement positions Merck to harness the potential of sac-TMT, a promising ADC candidate targeting TROP2,” said Caroline Litchfield, Merck’s chief financial officer. “We are making critical investments that drive both patient impact and revenue growth while maintaining financial discipline.”
