Merck Acquires Terns Pharmaceuticals for $6.7 Billion

Merck announced on Wednesday its agreement to acquire Terns Pharmaceuticals, a California-based biotechnology company, in an all-cash deal valued at $6.7 billion. The transaction, which offers $53 per share for Terns' outstanding shares, aims to strengthen Merck's oncology portfolio with an experimental treatment for chronic myeloid leukemia, a blood cancer that affects bone marrow and leads to abnormal white blood cell production.

The acquisition centers on TERN-701, an oral investigational drug in early clinical development for patients with chronic myeloid leukemia who have received prior treatments. Early trial data showed a 75 percent major molecular response rate among those participants, suggesting potential improvements in efficacy and safety compared to existing options. The U.S. Food and Drug Administration granted TERN-701 orphan drug designation for this indication in March 2024, providing regulatory incentives for its advancement. Merck plans to integrate the therapy into its broader pipeline, leveraging its resources to accelerate further studies and potential commercialization.

Robert M. Davis, chairman and chief executive officer of Merck, described the deal as a...