Blackstone Life Sciences shares rise 1.37% to monthly high on Merck partnership for sac-TMT trials

The share price rose to its highest level so far this month today, with an intraday gain of 1.37%.

Blackstone Life Sciences’ $700 million funding agreement with Merck & Co. to advance sacituzumab tirumotecan (sac-TMT), a TROP2-targeting antibody-drug conjugate, has bolstered investor confidence. The partnership supports Merck’s Phase III trials for the drug, which has already secured regulatory approval in China for lung and breast cancer indications. Blackstone will receive low- to mid-single-digit royalties on sac-TMT’s net sales, contingent on U.S. regulatory approval for first-line triple-negative breast cancer treatment. The deal aligns with Merck’s strategy to diversify its pipeline amid Keytruda’s looming patent expiry, while Blackstone gains exposure to a high-potential oncology asset.

The investment underscores Blackstone’s role as a strategic investor in biopharmaceutical innovation, particularly in the expanding ADC market. Merck’s simultaneous acquisition of MK-8690, an anti-CD30 ligand monoclonal antibody for inflammatory bowel disease, highlights its broader push into immunology, with Blackstone’s funding reinforcing this dual focus. The partnership’s success hinges on sac-TMT’s regulatory and commercial milestones, offering Blackstone upside potential if the drug secures U.S. approval and gains traction. However, delays or trial failures could temper returns, reflecting the high-risk, high-reward nature of Blackstone’s life sciences investments. The deal also positions the firm to benefit from Merck’s pipeline expansion, aligning with broader industry trends toward collaborative R&D in high-growth therapeutic areas.