NEW YORK, November 4, 2025 – Merck & Co (MRK.N) secured 700 million in non-refundable funding from Blackstone Life Sciences to develop an experimental cancer therapy called sacituzumab tirumotecan.
The agreement provides Merck with substantial capital to advance its oncology pipeline while allowing Blackstone to participate in potential future returns from the investigational drug.
Key Takeaways
- Blackstone provides 700 million non-refundable funding for cancer drug
- Sacituzumab tirumotecan targets solid tumors in clinical trials
- Deal preserves existing Kelun-Biotech collaboration partnership
Market reaction & context
Merck shares traded in line with the broader pharmaceutical sector following the announcement 1. The funding agreement represents a significant validation of Merck’s oncology research capabilities, as private equity firms increasingly target promising biotech assets.
Blackstone Life Sciences has emerged as a major player in healthcare investing, deploying billions across drug development partnerships with established pharmaceutical companies.
Deal structure and drug profile
Under the terms of the agreement, Blackstone will pay Merck the full 700 million upfront, with the funding classified as non-refundable subject to termination provisions 2. Sacituzumab tirumotecan is an antibody-drug conjugate designed to deliver targeted chemotherapy directly to cancer cells.
The experimental therapy is currently being evaluated in clinical trials for various solid tumor types. Antibody-drug conjugates represent a growing class of precision cancer medicines that aim to minimize side effects while maximizing therapeutic impact.
Strategic partnerships preserved
The Blackstone funding agreement does not affect Merck’s existing collaboration with Kelun-Biotech for the same compound, according to company statements 6. This structure allows Merck to maintain multiple development pathways while securing additional capital.
Merck originally gained access to sacituzumab tirumotecan through its partnership with Chinese biotech company Kelun-Biotech, highlighting the pharmaceutical giant’s strategy of leveraging external innovation.
Industry implications
The deal reflects growing private equity interest in late-stage drug development, where institutional investors can participate in potentially lucrative returns while pharmaceutical companies reduce their capital risk. Similar funding partnerships have become increasingly common as drug development costs continue to rise.
For Merck, the agreement provides financial flexibility to advance its oncology pipeline without diluting shareholders or taking on traditional debt financing.
Not investment advice. For informational purposes only.
References
1(November 4, 2025). “Merck Enters into Research and Development Funding Agreement with Blackstone Life Sciences for Sacituzumab Tirumotecan”. Merck & Co. Retrieved November 4, 2025.
2(November 4, 2025). “Merck secures 700 million funding from Blackstone to develop cancer therapy”. Reuters. Retrieved November 4, 2025.
3(November 4, 2025). “Merck Secures 700 Million Funding From Blackstone to Develop Cancer Therapy”. US News. Retrieved November 4, 2025.
4(November 4, 2025). “Merck secures 700 million funding from Blackstone to develop cancer therapy”. TradingView. Retrieved November 4, 2025.
5(November 4, 2025). “Merck Gets 700 Million from Blackstone Life Sciences for Development of Cancer Drug”. MarketScreener. Retrieved November 4, 2025.
6(November 4, 2025). “Merck receives 700 million from Blackstone for cancer drug development”. StreetInsider. Retrieved November 4, 2025.
7(November 4, 2025). “Merck and Blackstone enter research agreement to develop cancer therapy for 700 million”. MarketScreener. Retrieved November 4, 2025.
8(November 4, 2025). “Health & Pharma News | Latest Healthcare Stories”. Reuters. Retrieved November 4, 2025.
9(November 4, 2025). “Merck & Co., Inc.”. Yahoo Finance. Retrieved November 4, 2025.