Merck to Buy Terns for $6.7B to Bolster Cancer Pipeline Pre-2028 Patent Expiry
Merck agreed to acquire Terns Pharmaceuticals for $6.7 billion in cash, paying $53 per share in a deal expected to close in Q2. The acquisition bolsters its cancer portfolio ahead of Keytruda’s 2028 patent expiry and will incur a $5.8 billion charge in its next quarter results.
1. Deal Structure and Terms
Merck will acquire Terns Pharmaceuticals for $6.7 billion in an all-cash transaction, offering $53 per share through a tender offer. The agreement has board approvals from both companies and is slated to close in the second quarter pending shareholder approval.
2. Strategic Oncology Expansion
Terns is developing a treatment for chronic myeloid leukemia, showing promising early-stage trial results that complement Merck’s oncology portfolio. This acquisition prepares Merck for the upcoming expiration of Keytruda’s patent in 2028 by adding a potential new cancer therapy.
3. Financial and Earnings Impact
Merck expects to record a one-time charge of about $5.8 billion, or $2.35 per share, related to the purchase in its second-quarter and full-year financial results. Investors will watch how the charge and subsequent integration will affect upcoming earnings and cash flow.