Merck joins forces with Blackstone to accelerate the global development of SKB BIO-B's authorized product Sac-TMT with an investment of 700 million dollars.

On November 4th, Merck took the rare action of initiating a special financing for the development of Sac-TMT, an antibody-drug conjugate, by raising $700 million from Blackstone to fund its global development by 2026. Merck retains the decision-making and control rights for the development, production, and commercialization of Sac-TMT, and exchanged certain future returns of Sac-TMT for this financing. Sac-TMT, a blockbuster ADC drug authorized to Merck by SKB BIO-B (06990) in 2022, has already attracted industry attention. The strategic layout behind this financing reveals Merck's high regard for Sac-TMT. In recent years, Merck has continuously increased its investment in the ADC track, reaching billion-dollar collaborations with companies such as LianBio and Daiichi Sankyo. With the patent cliff approaching for Keytruda, Merck's determination towards ADC drugs has become stronger. However, the progress of other ADC drugs in the pipeline has not met expectations, as HER3-DXd failed to reach key endpoints in global Phase III clinical trials, leading to the withdrawal of its market application. In contrast, Sac-TMT has shown strong momentum in many aspects. Not only was it approved first in China, but it also won 2 LBAs (including one heavyweight chairman forum report) and 5 posters at the recent ESMO conference, becoming one of the most reported domestic innovative drugs. It has shown breakthrough efficacy in areas such as non-small cell lung cancer. The combination of Sac-TMT with Keytruda has broken through the treatment bottleneck of Keytruda in areas such as prostate cancer, further demonstrating strong joint potential and becoming a crucial asset in Merck's ADC strategic layout. Currently, Merck has initiated 15 global Phase III clinical studies around Sac-TMT in multiple areas such as lung cancer, breast cancer, gastric cancer, and gynecologic tumors. This special financing reflects the high level of attention Merck is giving to this product, with Caroline Litchfield, Merck's CFO, stating, "As a targeted TROP2 ADC candidate with great potential, this agreement will allow us to fully explore its capabilities, while we continue to advance its extensive and in-depth product development." According to information from Merck's 2025 ASCO investor conference, from 2027 to 2029, Sac-TMT will see the concentrated disclosure of data from 9 Phase III clinical trials. The release of these key data will further validate the huge market potential of Sac-TMT globally, solidify its core position in Merck's global pipeline, and become a cornerstone in oncology layout. The seemingly simple funding injection from Blackstone actually reflects its unique vision in the field of biopharmaceuticals. Looking back at Blackstone's previous investments in the biopharmaceutical field, especially in promoting the siRNA therapy EngKsi Lan through strategic financing (which later became a core asset in the Novartis pipeline, with sales expected to exceed one billion USD this year), reveals the precision and foresight in its capital operations. The collaboration with Merck likewise demonstrates Blackstone's deep insight into the potential of Sac-TMT and its willingness to accelerate its global development process through financial support. With the strong push from Merck, this Chinese original drug is rapidly entering the global market and becoming a cornerstone product in global cancer treatment, with its vast market potential worth looking forward to.