News Article

Multinational pharma group Merck has reached a definitive agreement to acquire pharmaceutical research company Terns Pharmaceuticals in a transaction valued at approximately $6.7bn.

This move is widely viewed as a strategic manoeuvre to bolster Merck’s oncology and haematology pipeline as the company prepares for the anticipated loss of exclusivity for its blockbuster cancer therapy, Keytruda, later this decade.

The primary driver for the acquisition is TERN-701, as this acquisition allows it to enter the durable chronic myeloid leukaemia market with a differentiated product that may offer superior safety and faster kinetic responses compared to existing treatments

The transaction is expected to close in the second quarter of 2026.

For Terns’ shareholders, particularly those who participated in a $750m capital raise in late 2025, the exit provides a significant return on investment within a short timeframe. This transaction underscores a broader industry trend of large pharmaceutical firms aggressively pursuing de-risked clinical assets to ensure long term growth.