Merck Gains Blackstone's $700M Backing for Prostate Cancer Drug
Strategic funding from Blackstone Life Sciences will accelerate development of sacituzumab tirumotecan, a key asset in Merck's post-Keytruda pipeline.
Merck & Co. has secured a significant $700 million investment from Blackstone Life Sciences to advance the development of its promising prostate cancer therapy, sacituzumab tirumotecan (sac-TMT). The deal, announced Tuesday, provides a substantial capital infusion to de-risk one of the drugmaker's key pipeline candidates as it prepares for a future beyond its blockbuster cancer drug, Keytruda.
The strategic collaboration sent Merck shares rising in pre-market trading as investors reacted positively to the validation from a major life sciences investor. The funding is designed to support a broad clinical development program for sac-TMT, which is being evaluated in three Phase 3 clinical trials for metastatic castration-resistant prostate cancer (mCRPC) and has trials planned for other cancers, including breast and bladder.
Under the terms of the agreement, Blackstone will provide the $700 million as a non-refundable upfront payment. In return, Blackstone Life Sciences will be eligible to receive future low-to-mid single-digit royalties on the drug's net sales if and when it receives regulatory approval in the United States. According to the official announcement, Merck will retain full rights and control over the development and commercialization of sac-TMT.
This financing structure allows Merck to accelerate and expand its research without immediately impacting its own R&D budget, a strategic move as the company manages its extensive late-stage pipeline. For Blackstone, the deal represents a calculated investment in a promising, late-stage asset from a major pharmaceutical player, a strategy that has become a hallmark of its life sciences division.
"This collaboration with Blackstone provides a significant, non-dilutive infusion of capital that allows us to advance a key part of our oncology pipeline," a Merck spokesperson might state, emphasizing the strategic benefit. "It validates the potential of sac-TMT and accelerates our ability to bring this potential new therapy to patients."
Sac-TMT is a type of antibody-drug conjugate (ADC), a class of targeted therapies that deliver potent chemotherapy agents directly to cancer cells, minimizing damage to healthy tissue. This technology is at the forefront of modern oncology, and sac-TMT is a cornerstone of Merck’s strategy to build a diversified portfolio of cancer treatments.
The push to develop new blockbusters is critical for Merck. The company's flagship immunotherapy, Keytruda, which generated over $8 billion in the third quarter of 2025, is expected to face patent expiration and subsequent generic competition toward the end of the decade. This looming "patent cliff" has put pressure on the company to deliver on its pipeline, making the success of drugs like sac-TMT paramount.
Analysts have maintained a cautiously optimistic stance on Merck, with a consensus "Moderate Buy" rating and an average price target around $102, according to recent reports. While the company's Q3 earnings beat expectations, its narrowed full-year revenue forecast raised some concerns over slowing growth for key products. This collaboration with Blackstone provides a welcome boost of confidence in the company's long-term strategy.
Merck's stock, trading at $82.49, has a 52-week range between $71.87 and $101.32. The Blackstone deal underscores the value embedded in the company's broader oncology efforts, which include other promising candidates like opevesostat, another prostate cancer drug for which Merck recently acquired global exclusive rights.
The investment from Blackstone is not just a financial transaction; it's a strategic endorsement of Merck's scientific platform and its vision for the next generation of cancer care. As the clinical trials for sac-TMT progress, the market will be watching closely to see if this Blackstone-backed asset can become a pillar of Merck's post-Keytruda era.