Merck will acquire Terns Pharmaceuticals, Inc. in a $6.7 billion deal that will expand the Rahway-based pharma giant’s hematology pipeline with a drug now in development for chronic myeloid leukemia (CML), the two companies announced on Wednesday.
Under the agreement, Merck will pay $53 per share in cash through a subsidiary, valuing the transaction at about $5.7 billion net of Terns’ cash. The offer represents a premium of roughly 31% to Terns’ 60-day average share price and 42% to its 90-day average as of March 24, 2026.
“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.”
Chronic myeloid leukemia is a slow growing type of blood cancer that leads to an overproduction of white blood cells that accumulate in the bone and bone marrow. The disease is caused by an abnormal fusion gene – a translocation between chromosomes 9 and 22 that results in constitutive activation of the BCR::ABL1 fusion protein that fuels cancer growth.
Terns Pharmaceuticals, Inc.’s lead drug candidate, TERN-701, is an experimental oral treatment for chronic myeloid leukemia currently being tested in a Phase 1/2 clinical trial for patients whose disease has not responded to, or who cannot tolerate, existing therapies. In March 2024, the U.S. Food and Drug Administration granted the drug Orphan Drug Designation, a status that carries special incentives for drugs being developed to treat rate diseases.
Early clinical trial results show TERN-701 is producing encouraging responses, with many patients seeing significant reductions in cancer levels within 24 weeks. The drug has also shown effectiveness in harder-to-treat patients — including those with advanced CML who have already received multiple lines of prior therapy.
Amy Buroughs, chief executive officer at Terns, said the deal with Merck reflects her team’s commitment to innovation in oncology and the development of 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,” she said. “I am immensely proud of the Terns team and our work towards making a difference for people living with CML.”
