Merck & Co. Secures $700M from Blackstone, Acquires Full Rights to MK-8690

Being developed in collaboration with Sichuan Kelun-Biotech Biopharmaceutical, Merck is currently conducting 15 global Phase III studies of sac-TMT across six tumour types, including breast, endometrial, and lung cancers.

Merck & Co. announced that it will receive $700 million in funding from Blackstone Life Sciences to advance the development of its TROP2-targeting antibody-drug conjugate (ADC), sacituzumab tirumotecan (sac-TMT).

In return, Blackstone will receive low- to mid-single-digit royalties on net sales of the ADC.

Being developed in collaboration with Sichuan Kelun-Biotech Biopharmaceutical, Merck is currently conducting 15 global Phase III studies of sac-TMT across six tumour types, including breast, endometrial, and lung cancers. The drug has already received approval in China for two non-small-cell lung cancer indications and triple-negative breast cancer (TNBC).

According to the company, the funding from Blackstone will help cover a portion of the ADC’s expected development costs in 2026. The agreement builds on Merck’s oncology strategy as it aims to strengthen its pipeline amid the upcoming patent expiry of its PD-1 inhibitor, Keytruda (pembrolizumab).

"This agreement positions Merck to harness the potential of sac-TMT," said Chief Financial Officer Caroline Litchfield. "We are making important investments to drive patient impact and revenue growth…while remaining disciplined towards maintaining an appropriate financial profile."

Under the funding deal, Blackstone will receive royalties on sac-TMT sales across all approved indications in Merck's marketing territories, contingent upon regulatory approval in the US for first-line treatment of TNBC based on findings from the TroFuse-011 trial.

Alongside the Blackstone funding, Merck also announced that it has acquired full rights to MK-8690, an anti-CD30 ligand monoclonal antibody for inflammatory bowel disease (IBD). The company paid $150 million upfront to Dr. Falk Pharma, its previous development partner, and will take full responsibility for the drug’s development and commercialisation.

The agreement with Dr. Falk includes undisclosed development milestones and sales royalties. Merck had been co-developing MK-8690, formerly PRA-052, under an agreement inherited from its 2023 acquisition of Prometheus. The company noted that the new funding will support continued investment in its “broad and expansive pipeline,” which includes ongoing work on both oncology and immunology assets.

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