Merck & Co. has agreed to acquire Terns Pharmaceuticals, a clinical-stage bio/pharmaceutical company focused on oncology, for $6.7 billion. 

Terns’ lead candidate, TERN-701, is an investigational oral drug for treating chronic phase chronic myeloid leukemia (CML). Specifically it is an allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI) currently being evaluated in a Phase I/II trial for patients with Philadelphia chromosome-positive (Ph+), chronic phase CML previously treated with at least one prior TKI and who experienced treatment failure, suboptimal response, or treatment intolerance. In March 2024, the US Food and Drug Administration granted orphan drug designation for TERN-701 for the treatment of CML. 

The transaction has been approved by both Merck’s and Terns’ Boards of Directors. Under the agreement, Merck, through a subsidiary, will acquire all of the outstanding shares of Terns. The closing of the proposed transaction will be subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. The transaction is expected to close in the second quarter of 2026. 

Source: Merck & Co.