Merck to Acquire Terns in $6.7 Billion Deal
Merck & Co.—known as MSD outside North America—has announced a definitive agreement to acquire Terns Pharmaceuticals in a deal valued at approximately $6.7 billion, strengthening its position in oncology and hematology.
Under the terms of the agreement, Merck will purchase Terns for $53.00 per share in cash, representing a premium of about 31% to the company’s 60-day average stock price and 42% to its 90-day average as of March 24, 2026. The transaction’s net value, after accounting for Terns’ cash, stands at roughly $5.7 billion.
The acquisition is centered on Terns’ lead investigational candidate, TERN-701, a novel oral allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI) being developed for the treatment of chronic myeloid leukemia (CML). The therapy is currently being evaluated in a Phase 1/2 clinical trial targeting patients with Philadelphia chromosome-positive chronic phase CML who have previously undergone treatment with other TKIs but experienced suboptimal outcomes or intolerance.
Merck Chairman and CEO Robert M. Davis said the acquisition aligns with the company’s strategy to expand its oncology pipeline while building a stronger presence in hematology. He highlighted TERN-701 as a potential best-in-class therapy that could address unmet needs in CML treatment.
Terns CEO Amy Burroughs emphasized that the deal reflects the company’s commitment to advancing innovative cancer therapies. She noted that Merck’s global scale, expertise, and resources would help accelerate the development of TERN-701 and bring it closer to patients.
Early clinical data for TERN-701 has shown promising results, including encouraging rates of major molecular response and deep molecular response within 24 weeks of treatment. These outcomes have been observed even in patients with high disease burden and those previously treated with multiple therapies, including other allosteric TKIs. The drug has also demonstrated a favorable safety profile, with most adverse events reported as low grade and a low rate of treatment discontinuation.
In 2024, the U.S. Food and Drug Administration granted Orphan Drug Designation to TERN-701 for the treatment of CML, underscoring its potential importance in addressing a rare but serious disease.
Dean Y. Li noted that while earlier generations of TKIs transformed outcomes for CML patients, there remains a need for therapies that deliver faster and deeper molecular responses with improved tolerability.
The transaction has been approved by the boards of both companies and will proceed through a tender offer for Terns’ outstanding shares. Completion of the deal is subject to customary closing conditions, including regulatory approvals under the Hart-Scott-Rodino Act. The acquisition is expected to close in the second quarter of 2026.
Merck stated that the deal will be accounted for as an asset acquisition, with an anticipated charge of approximately $5.8 billion reflected in its 2026 financial results.