Merck Commits $20M Upfront, $2.2B IBD Collaboration; Acquires Terns for $6.7B
Merck will invest $20 million upfront and up to $2.2 billion in milestone payments in a multi-year collaboration with Quotient Therapeutics to identify IBD drug targets via somatic genomics. Merck is acquiring Terns Pharmaceuticals for up to $6.7 billion to bolster its oncology pipeline ahead of Keytruda’s patent cliff.
1. Merck and Quotient Research Collaboration
Merck has entered a multi-year collaboration with Quotient Therapeutics to discover inflammatory bowel disease drug targets using Quotient’s somatic genomics platform, providing $20 million upfront and up to $2.2 billion in milestone payments tied to regulatory, development and commercial outcomes.
2. Merck’s Acquisition of Terns Pharma
Merck is acquiring Terns Pharmaceuticals in a deal valued up to $6.7 billion, with an initial outlay near $6 billion, to strengthen its oncology pipeline with a promising early-stage chronic myeloid leukemia candidate ahead of Keytruda’s upcoming patent expiration.
3. Strategic Pipeline Expansion and Patent Cliff Mitigation
These agreements expand Merck’s immunology and oncology portfolios, offset expected revenue losses from Keytruda’s patent cliff and support long-term growth through novel therapeutic avenues in IBD and CML.