Merck To Acquire Terns In $6.7B Deal – Signaling Fresh Push In Competitive Cancer Drug Race

At the core of the deal is Terns’ investigational drug TERN-701, an oral therapy designed to address mutations associated with chronic myeloid leukemia.
Medicine pill is seen with Merck logo displayed on a screen in the background in this illustration photo taken in Poland on November 5, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
Medicine pill is seen with Merck logo displayed on a screen in the background in this illustration photo taken in Poland on November 5, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
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Shivani Kumaresan·Stocktwits
Updated Mar 25, 2026   |   7:11 AM EDT
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Merck & Co. Inc. (MRK) has struck a multibillion-dollar deal to expand its oncology pipeline, agreeing to acquire clinical-stage biotech firm Terns Pharmaceuticals Inc. (TERN) for $53 per share in cash, at an approximate $6.7 billion valuation. 

The offer represents a 6% premium over Terns’ closing price as of Tuesday. 

Central to the acquisition is Terns’ experimental therapy, TERN-701, an oral treatment targeting specific mutations linked to chronic myeloid leukemia. The drug candidate is currently under evaluation in mid-stage clinical trials. 

Following the announcement, Terns Pharmaceuticals’ stock traded over 4% higher in Wednesday’s premarket. 

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