Merck to Pay $6.7B for Terns, Gains CML Asset Outperforming Scemblix
Merck & Co. will acquire Terns Pharmaceuticals for $6.7bn, paying $53 per share in cash (6% premium) to secure TERN-701, an oral BCR-ABL1 inhibitor with a 75% molecular response rate at week 24, doubling Novartis’ Scemblix performance. The transaction is expected to close in Q2 2026.
1. Acquisition Terms
Merck & Co. agreed to purchase Terns Pharmaceuticals for $6.7 billion, paying $53 per share in cash, representing a 6% premium over the biopharma’s last closing price. The deal is slated to complete in the second quarter of 2026.
2. TERN-701 Clinical Data
Terns’ lead candidate, TERN-701, is an oral allosteric BCR-ABL1 tyrosine kinase inhibitor in a Phase I/II trial for Ph+ chronic myeloid leukemia. The therapy achieved a 75% major molecular response rate at week 24, more than double the response reported for Novartis’ Scemblix, with daily dosing and no food restrictions.
3. Impact on Novartis Scemblix
Novartis projects Scemblix will generate at least $4 billion in peak annual sales, but TERN-701’s superior efficacy and safety data position it as a potential challenger to the current market leader. Analysts warn that TERN-701 could disrupt the CML treatment paradigm and erode Scemblix’s market share.
4. Merck’s Strategic Buildout
This acquisition follows Merck’s recent purchases of Cidara Therapeutics for $9.2 billion and Verona Pharmaceuticals for $10 billion, bolstering its pipeline ahead of Keytruda’s patent expirations. The Terns deal underscores a broader strategy to offset anticipated oncology revenue gaps through targeted bolt-on acquisitions.