Merck Acquires Terns Pharmaceuticals to Advance TERN-701 for Chronic Myeloid Leukaemia
Thursday, March 26, 2026
Merck has entered into a definitive agreement to acquire Terns Pharmaceuticals for $53.00 per share in cash, valuing the company at approximately $6.7 billion, or about $5.7 billion net of acquired cash.
Chronic myeloid leukaemia is a slow-growing blood cancer characterised by the excessive production of white blood cells. These abnormal cells accumulate in the blood and bone marrow, interfering with normal blood cell production. The disease is commonly linked to the Philadelphia chromosome, a genetic abnormality that produces the BCR::ABL1 fusion protein, which drives cancer progression.
TERN-701 is a novel allosteric BCR::ABL1 tyrosine kinase inhibitor currently under evaluation in the Phase 1/2 CARDINAL trial. The study focuses on patients with Philadelphia chromosome-positive chronic phase CML who have previously received at least one tyrosine kinase inhibitor and experienced treatment failure, intolerance, or suboptimal response. The candidate received Orphan Drug Designation from the U.S. Food and Drug Administration in March 2024.
The offer represents a premium of around 31% to the 60-day and 42% to the 90-day volume-weighted average share price as of 24 March 2026.
The acquisition is intended to strengthen Merck’s presence in hematology and expand its oncology pipeline. A key asset in the deal is TERN-701, an investigational oral therapy being developed for chronic myeloid leukaemia (CML).
Early clinical findings have shown encouraging results, including notable rates of major and deep molecular responses by week 24. These responses were also observed in patients with high disease burden and those who had undergone multiple prior treatments. Safety data so far suggest that most adverse events are low grade, with few severe cases or treatment discontinuations. No meaningful changes in blood pressure have been reported, and instances of elevated lipase levels have remained low.
The transaction has been approved by the boards of both companies. Under the agreement, Merck will acquire all outstanding shares of Terns through a subsidiary, subject to shareholder approval and customary closing conditions, including regulatory clearance.
The deal is expected to close in the second quarter of 2026 and will be accounted for as an asset acquisition. Merck anticipates recording a charge of approximately $5.8 billion, or $2.35 per share, in its 2026 financial results.
Source: merck.com
