Overview
- Merck said Wednesday it will buy Terns Pharmaceuticals for $53 per share in cash, a deal valued at about $6.7 billion.
- The companies expect to close in the second quarter, pending a successful shareholder tender and regulatory clearance, and Merck plans to record an approximately $5.8 billion charge in upcoming results.
- The acquisition centers on TERN-701, an oral therapy for chronic myeloid leukemia, a slow-growing blood cancer, which showed about a 75% major molecular response at 24 weeks in early testing.
- The offer equals a roughly 6% premium to Terns’ prior close, or about 31% above its 60‑day average, and analysts say the low markup could invite competing bids or deter tenders.
- Merck is targeting new cancer assets as Keytruda patents start to expire around 2028, and success for TERN-701 in planned late-stage trials could give patients a convenient daily option that rivals Novartis’ Scemblix.