Merck & Co. to Acquire Terns for $6.7B, Targets CML Therapy with 75% Response
Merck & Co. will acquire cancer specialist Terns Pharmaceuticals for $6.7bn, paying $53 per share, a 6% premium, with closing expected in Q2 2026. Terns' lead asset TERN-701, in a Phase I/II trial for Ph+ CML, achieved a 75% major molecular response at week 24.
1. Acquisition Terms
Merck & Co. agreed to buy Terns Pharmaceuticals for $6.7bn in cash, paying $53 per share, representing a 6% premium over the prior closing price. The transaction is slated to complete in Q2 2026, bolstering Merck’s late-stage oncology portfolio.
2. TERN-701 Clinical Performance
Terns’ lead candidate, TERN-701, is an oral allosteric BCR-ABL1 tyrosine kinase inhibitor in a Phase I/II trial for Philadelphia chromosome-positive chronic myeloid leukemia. Data showed a 75% major molecular response rate at week 24, with daily dosing and no food restrictions, potentially outpacing existing TKIs.
3. Strategic Rationale
With Keytruda’s patent expiry on the horizon, Merck is shoring up its pipeline through multibillion-dollar buys. This deal follows its $9.2bn acquisition of Cidara Therapeutics and $10bn purchase of Verona Pharmaceuticals to diversify beyond immuno-oncology.