Merck Acquires Terns for $6.7bn to Boost Oral CML Drug Pipeline
Merck announced a $6.7bn acquisition of Terns to add TERN-701, an oral BCR-ABL inhibitor in Phase I/II with FDA fast track status, diversifying its oncology portfolio ahead of Keytruda patent expiry. Interim CARDINAL data show 75% MMR and 36% DMR in CML patients, versus Scemblix’s 25.5% and 10.8%.
1. Acquisition Details
Merck announced on March 25 its $6.7bn acquisition of Terns, aiming to offset upcoming Keytruda patent expiry by integrating Terns’s lead candidate TERN-701 and diversifying its oncology portfolio.
2. TERN-701 Clinical Data
TERN-701 is an oral allosteric BCR-ABL tyrosine kinase inhibitor in a Phase I/II CARDINAL trial with FDA fast track designation and a 20% approval likelihood; interim data reveal 75% major molecular response and 36% deep molecular response in 32 CML patients.
3. Competitive Landscape
Upon launch, TERN-701 will challenge Novartis’s Scemblix, which achieved 25.5% MMR and 10.8% DMR at 24 weeks in 157 patients; TERN-701 also shows lower Grade 3+ adverse events (32% versus 50%) and fewer discontinuations (2% versus 5.8%).
4. Next Steps and Market Potential
Merck plans Phase III studies in first- and second-line CML settings, leveraging TERN-701’s favourable safety profile and lack of fasting requirements to capture market share from established therapies.