Pharma giant Merck is acquiring U.S. biotech firm Terns Pharmaceuticals for $6.7 billion, the company announced Wednesday.
Merck is planning to acquire Terns at $53 per share in cash. Under the merger agreement, Merck, through a subsidiary, will acquire all outstanding Terns shares.
Robert M. Davis, Chairman and CEO, Merck, told investors, “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. 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.”
Amy Burroughs, CEO of Terns, stated, “This acquisition reflects our team’s deep commitment to innovation in oncology and developing high impact medicines. 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.”
“The first approval of a BCR::ABL1 tyrosine kinase inhibitor 25 years ago transformed the prognosis for many patients with chronic myeloid leukemia. Despite new therapeutic options, there is significant need for innovative, well-tolerated therapies with faster time to onset of molecular response leading to deeper responses and better disease control,” said Dr. 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.”
This is the third multibillion-dollar acquisition for Merck over the past year.
The Terns deal is expected to close in the second quarter of 2026.
Terns shares rose 5.3% following the announcement.
By CEO NA Editorial Staff
