Nov 4 (Reuters) - Merck ( MRK ) said on Tuesday that it

has entered into an agreement to receive funds managed by

Blackstone Life Sciences for $700 million to develop an

experimental cancer therapy.

Under the terms of the agreement, Blackstone will fund a

portion of the development costs to test sac-TMT, an

experimental antibody-drug conjugate.

Antibody-drug conjugates are designed to deliver an

anti-cancer drug more precisely to malignant cells, causing less

damage to healthy cells than chemotherapy.

The payment is expected to be made throughout 2026, the

companies said.

Blackstone is eligible to receive low-to-mid single-digit

royalties on net sales of sac-TMT across all approved

indications.