Merck agreed on 25 March 2026 to acquire Terns Pharmaceuticals, a clinical-stage oncology company based in Foster City, California, for US$53.00 per share in cash, giving the deal an equity value of about US$6.7bn.
Why Merck & Co., Inc. is buying Terns Pharmaceuticals, Inc.
Merck said Terns' lead candidate TERN-701, an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor in the Phase 1/2 CARDINAL trial, builds on its growing presence in haematology. The company described the drug as a potential best-in-class option for certain patients with chronic myeloid leukaemia.
“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.”
Deal terms and financing
The price was about 31% above Terns' 60-day and 42% above its 90-day volume-weighted average share price to 24 March. Net of acquired cash the deal was worth about US$5.7bn. It was structured as a tender offer by a Merck subsidiary followed by a merger, and was expected to be accounted for as an asset acquisition with a charge of about US$5.8bn, or US$2.35 per share.
Regulatory approvals and timing
Closing required a majority of Terns shares to be tendered and expiry of the US Hart-Scott-Rodino waiting period. The tender offer expired on 4 May with about 86.4% of shares tendered, and Merck announced on 5 May 2026 that the acquisition was complete and Terns had been delisted from Nasdaq.
Market context
Merck is looking for new growth drivers as Keytruda, its top-selling cancer drug, nears patent expiry. The deal followed its 2025 agreements to buy Verona Pharma and Cidara Therapeutics. Merck's later quarterly filing lists the drug as MK-4208.
