Merck agrees to buy Terns Pharmaceuticals for about $6.7 billion
The Facts
- Merck agreed to acquire Terns Pharmaceuticals in an all-cash transaction valued at about $6.7 billion.
- Merck will pay $53 per share in cash for Terns Pharmaceuticals.
- The deal gives Merck access to Terns’ experimental drug TERN-701, which is being developed for chronic myeloid leukemia.
- The acquisition is part of Merck’s effort to bolster its oncology pipeline ahead of the expected patent expiration of Keytruda later this decade.
- The deal is expected to close in the second quarter of 2026.
- Terns shares rose in premarket trading after the acquisition announcement.
Context
What is Terns Pharmaceuticals developing?
Terns is a clinical-stage oncology company whose lead program, TERN-701, is being tested for chronic myeloid leukemia Investing.com,Reuters,Bloomberg Business. Some sources also describe Terns as working on treatments for other diseases, but the acquisition coverage centers on its leukemia asset WSJ,Economic Times.
Why is Merck making this deal now?
The reporting says Merck is trying to strengthen its cancer portfolio as it prepares for Keytruda’s patent expiration later this decade Investing.com,Investing.com,Reuters,Morningstar. Reuters also said Merck has been building out its late-stage pipeline through internal development and acquisitions Reuters.
When was the transaction announced and what happens next?
Merck announced the deal on Wednesday, March 25, 2026, and the companies said it is expected to close in the second quarter of 2026 Superhits 97.9 Terr…,CNBC,Bloomberg Business,cnbctv18.com. Bloomberg reported that both boards approved the transaction Bloomberg Business.
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