Merck & Co will acquire Terns Pharmaceuticals for $6.7 billion in cash at $53 per share, representing a 6% premium to the prior market close. Boards of both companies have approved the transaction, which is expected to close in Q2 2026, subject to a majority of Terns’ stockholders tendering their shares.

Terns’ lead candidate TERN-701, an oral allosteric BCR-ABL1 TKI for Philadelphia chromosome-positive chronic myeloid leukemia, demonstrated a 75% major molecular response rate at week 24 in a Phase I/II trial. This response was more than double that of Novartis’s Scemblix and showed no food effect, highlighting strong efficacy and convenience of daily dosing.

Existing TKIs such as Scemblix are projected to reach at least $4 billion in peak annual sales, but TERN-701’s superior efficacy, safety profile and dosing convenience position it to disrupt the chronic myeloid leukemia treatment paradigm and challenge market leaders.

With Keytruda’s patent expiry approaching, the acquisition strengthens Merck’s oncology pipeline and follows prior purchases of Verona Pharmaceuticals and Cidara Therapeutics. The deal aims to offset anticipated revenue declines from immunotherapy and maintain growth in its cancer portfolio.