Merck(US:MRK) Zhi Tong Cai Jing·2025-11-04 13:33Core Insights - Merck (MRK.US) has entered into a $700 million research funding agreement with Blackstone to support the global development of its core ADC asset, sac-TMT, highlighting the growing focus on ADCs in global pharmaceutical innovation [1][2] - The partnership signifies a strong recognition of sac-TMT's commercial value and illustrates how Chinese innovative drugs are accelerating their entry into the global market through "global R&D + capital empowerment" [1][6] Strategic Positioning - Merck's CFO, Caroline Litchfield, stated that the agreement will help the company fully leverage the potential of sac-TMT while maintaining a robust financial position amid the impending patent cliff of Keytruda [2] - The collaboration began in 2022, with Merck acquiring rights to multiple ADCs, including sac-TMT, with a total transaction value exceeding $10 billion, setting a record for Chinese innovative drugs going global [2] - Currently, Merck is conducting 15 global Phase III clinical trials for sac-TMT across various cancer types, including lung, breast, gastric, and gynecological cancers [2] Capital Injection - The collaboration details indicate that Merck will exchange future revenue rights of sac-TMT for the funding, allowing for substantial financial support while maintaining product control [3] - Blackstone, a leading private equity firm, has a history of successfully bringing over 200 drugs to market, and its investment in sac-TMT reflects confidence in its competitive clinical data and market potential [3] Commercialization Acceleration - The commercial potential of sac-TMT has been validated through clinical results and market feedback, with reported revenues exceeding $300 million in the first half of 2025 [4] - At the recent ESMO conference, sac-TMT received two LBA awards and five poster presentations, marking it as one of the most recognized innovative drugs from China [4] - Merck has identified sac-TMT as a candidate with "blockbuster potential," with plans for multiple global Phase III clinical trial data disclosures starting in 2027 [4] Industry Benchmark - The collaboration between Merck and Blackstone positions sac-TMT as a benchmark for the internationalization of Chinese innovative drugs, aiming to fill treatment gaps in the global oncology field [6]