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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