Merck to Acquire Terns Pharmaceuticals, Expanding Hematology Pipeline with TERN-701

Merck (known as MSD outside the United States and Canada) has announced a definitive agreement to acquire Terns Pharmaceuticals, Inc., a clinical-stage oncology company, for $53.00 per share in cash, representing an approximate equity value of $6.7 billion. The transaction strengthens Merck’s hematology pipeline with Terns’ lead candidate, TERN-701.

“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, 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 an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI) currently being evaluated in the Phase 1/2 CARDINAL trial for patients with Philadelphia chromosome-positive (Ph+), chronic phase chronic myeloid leukemia (CML) who have previously received at least one TKI and experienced treatment failure, suboptimal response, or intolerance. The candidate received Orphan Drug Designation from the U.S. FDA in March 2024.

“This acquisition reflects our team’s deep commitment to innovation in oncology and developing high impact medicines,” said Amy Burroughs, chief executive officer, Terns. “By working together, we will advance TERN-701, leveraging the deep expertise and significant resources at Merck, a global biopharmaceutical leader with a proven track record of delivering cancer breakthroughs for patients who need them most. I am immensely proud of the Terns team and our work towards making a difference for people living with CML. Finally, we extend our heartfelt thanks to the investigators, patients, and community advocates whose dedication and support make the development of TERN-701 possible.”

In clinical trials to date, TERN-701 has shown promising activity, including encouraging rates of major and deep molecular responses by week 24. These responses were observed even in patients with high disease burden who had received multiple prior therapies, including allosteric TKIs. The treatment has also demonstrated a favourable safety profile, with most adverse events reported as low grade and a low incidence of severe events or discontinuations.

“The first approval of a BCR::ABL1 tyrosine kinase inhibitor 25 years ago transformed the prognosis for many patients with chronic myeloid leukemia. Despite new therapeutic options, there is significant need for innovative, well-tolerated therapies with faster time to onset of molecular response leading to deeper responses and better disease control,” said Dr. Dean Y. Li, president, Merck Research Laboratories. “Based on early clinical evidence, TERN-701, a novel allosteric BCR::ABL1 inhibitor, may have the potential to provide a meaningfully differentiated option for certain patients living with CML.”

The transaction has been approved by the boards of both companies and is expected to close in the second quarter of 2026, subject to customary regulatory approvals and shareholder conditions.