Merck Secures $700M Investment from Blackstone to Fast-Track Next-Gen Cancer Drug

Merck announced a major funding agreement to boost its cancer drug development. The company will receive $700 million from Blackstone Life Sciences. This money will help fund the development of an experimental cancer therapy, sacituzumab tirumotecan (sac-TMT).

The new drug is an antibody-drug conjugate (ADC). ADCs are special treatments. They deliver anti-cancer drugs directly to malignant cells. This approach spares healthy tissue more than traditional chemotherapy. Merck is now testing sac-TMT in 15 late-stage trials globally. These trials cover six cancer types, including breast, endometrial, and lung cancers.

This investment is a strategic move for Merck. Its top-selling drug, Keytruda, will soon face cheaper competition. Merck must quickly advance new treatments to sustain its future business.

Blackstone’s $700 million payment will fund development costs through 2026. In exchange, Blackstone will receive future royalties on sac-TMT’s net sales. These royalties depend on the drug receiving U.S. regulatory approval. Merck will keep full control over the drug’s development, manufacturing, and commercialization. This deal shows strong investor confidence in Merck’s oncology pipeline.