Merck to Acquire Terns for $6.7bn, Highlighting TERN-701’s 75% MMR in CML
Merck will acquire Terns for $6.7bn to integrate TERN-701, an oral BCR-ABL TKI in Phase I/II with FDA fast-track and 20% approval likelihood to expand its hematological malignancies portfolio before Keytruda patent expiry. Interim CARDINAL data report 75% MMR and 36% DMR at 24 weeks, outpacing Scemblix’s 25.5% and 10.8%.
1. Acquisition Details
On March 25, Merck agreed to purchase Terns Pharmaceuticals for $6.7bn via a subsidiary, aiming to shore up its oncology pipeline ahead of Keytruda’s patent expiration. The deal secures exclusive rights to TERN-701 and reinforces Merck’s presence in haematological malignancies.
2. TERN-701 Clinical Data
TERN-701 is an oral allosteric BCR-ABL tyrosine kinase inhibitor currently in Phase I/II (CARDINAL) for CML patients with prior TKI treatment. Interim results show 75% major molecular response and 36% deep molecular response at 24 weeks, and the candidate received FDA fast-track status in December 2025 with a 20% likelihood of approval, while Phase III studies are planned for both first- and second-line settings.
3. Competitive Landscape
TERN-701’s interim efficacy surpasses Novartis’s Scemblix, which achieved 25.5% MMR and 10.8% DMR at 24 weeks in the ASCEMBL trial. Safety profiles also favor TERN-701 with 32% Grade 3+ adverse events versus 50% for Scemblix, lower discontinuation rates, and no fasting requirement, while switch data show 60% of Scemblix-treated patients reached MMR on TERN-701 within 24 weeks.
4. Strategic Implications
By acquiring Terns, Merck positions itself to capture market share in CML and offset anticipated declines in Keytruda revenue. The robust efficacy and convenience profile of TERN-701 could redefine treatment standards and intensify competition in the BCR-ABL inhibitor market.