United States-based Merck, known as MSD outside the United States and Canada, has entered a definitive agreement to acquire Terns Pharmaceuticals for $53.00 (€45) per share in cash, representing an approximate equity value of $6.7 billion (€5.7 billion), according to a Pharmaceutical Technology report.

The price reflects a premium of approximately 31 per cent to Terns' 60-day and 42 per cent to its 90-day volume-weighted average stock price. Both companies' boards have approved the transaction, which is expected to close during the second quarter of 2026 pending antitrust clearance and a majority tender of Terns shares.

The acquisition centres on TERN-701, an investigational oral drug candidate that works by binding to the ABL myristoyl pocket, a mechanism distinct from the ATP-binding site targeted by most existing therapies. The approach represents continued industry investment in allosteric inhibition as a strategy for overcoming resistance in hematologic malignancies.

"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 at 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."

TERN-701 is currently being evaluated in the Cardinal trial, a global, multi-centre, Phase I/II dose escalation and expansion study enrolling patients with Philadelphia chromosome-positive chronic phase chronic myeloid leukemia who had previously received at least one tyrosine kinase inhibitor. The dose escalation portion completed in January 2025 with no dose-limiting toxicities observed up to the maximum dose of 500mg once daily.

The FDA granted Orphan Drug Designation for TERN-701 for treatment of chronic myeloid leukemia in March 2024.

View detailed analysis of Merck's Terns Pharmaceuticals acquisition and hematology portfolio expansion in the complete article.