Global pharma powerhouse Merck is doubling down on cancer, announcing a $6.7 billion all-cash deal to acquire clinical-stage biotech Terns Pharmaceuticals in a move aimed at strengthening its oncology portfolio and accelerating a promising leukemia treatment.
Under the agreement, Merck will pay $53.00 per share for Terns, a premium of 31% over its 60-day average stock price and 42% over its 90-day average as of March 24, 2026. The transaction, expected to close in the second quarter of 2026, will be executed through a subsidiary and is subject to shareholder approval and regulatory clearances.
At the center of the deal is Terns’ lead drug candidate, TERN-701, a next-generation therapy targeting chronic myeloid leukemia (CML), a form of blood cancer that still presents treatment challenges despite decades of advances.
“The acquisition of Terns builds on our growing presence in hematology with TERN-701, a potential best-in-class candidate for the treatment of certain patients with chronic myeloid leukemia,” said Robert M. Davis, chairman and chief executive officer, Merck. “This transaction further diversifies and strengthens our position in oncology as we continue to look for opportunities to broaden our portfolio into other therapeutic areas.”
TERN-701 is currently in a Phase 1/2 clinical trial targeting patients who have failed or cannot tolerate existing therapies. Early data suggests the drug could deliver strong responses—including in heavily pretreated patients—while maintaining a favorable safety profile, with most side effects reported as low grade and few severe complications.
The U.S. Food and Drug Administration granted the drug Orphan Drug Designation in 2024, underscoring its potential importance in treating a relatively rare but serious disease.
For Terns, the deal marks both a validation of its science and a handoff to a pharmaceutical heavyweight capable of scaling development.
“This acquisition reflects our team’s deep commitment to innovation in oncology and developing high impact medicines,” said Amy Burroughs, chief executive officer, Terns.
“By working together, we will advance TERN-701, leveraging the deep expertise and significant resources at Merck, a global biopharmaceutical leader with a proven track record of delivering cancer breakthroughs for patients who need them most. I am immensely proud of the Terns team and our work towards making a difference for people living with CML. Finally, we extend our heartfelt thanks to the investigators, patients, and community advocates whose dedication and support make the development of TERN-701 possible.”
Merck executives framed the acquisition as part of a broader push to build the next wave of cancer therapies, particularly in areas where current treatments fall short.
“The first approval of a BCR::ABL1 tyrosine kinase inhibitor 25 years ago transformed the prognosis for many patients with chronic myeloid leukemia,” said Dean Y Li, president, Merck Research Laboratories. “Based on early clinical evidence, TERN-701, a novel allosteric BCR::ABL1 inhibitor, may have the potential to provide a meaningfully differentiated option for certain patients living with CML.”
