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Merck and Terns Pharmaceuticals, on March 25, 2026, said they had entered a definitive agreement under which Merck will acquire Terns for $53.00 per share in cash, implying an equity value of about $6.7 billion, or $5.7 billion net of acquired cash.
The deal adds TERN-701 to Merck’s hematology pipeline.
TERN-701 is an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor in Phase 1/2 development for certain patients with chronic myeloid leukemia. It is being studied in the global CARDINAL trial in previously treated patients with Philadelphia chromosome-positive chronic phase CML.
The FDA granted TERN-701 Orphan Drug Designation for the treatment of CML in March 2024.
The companies said early clinical data showed encouraging major molecular response and deep molecular response rates by week 24, with most treatment-emergent adverse events low grade. They also reported a low incidence of severe adverse events and discontinuations, no clinically meaningful blood pressure changes, and low rates of lipase elevation.
The deal is expected to close in the second quarter of 2026, subject to customary conditions, HSR clearance, and tender of a majority of Terns shares.
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