Merck’s $6.7B Acquisition of Terns Pharma Bolsters Cancer Drug Portfolio
Pharmaceutical titan, Merck, disclosed a significant acquisition this week, confirming its agreement to buy Terns Pharmaceuticals for a whopping $6.7 billion in cash. This strategic move is aimed at bolstering its oncology pipeline ahead of its flagship cancer drug, Keytruda, losing patent protection in 2028.
As per the deal announced on March 25, 2026, Merck will acquire Terns at $53 per share. This represents approximately a 31% premium to the company’s 60-day volume-weighted average stock price. The focal point of the acquisition is TERN-701, an experimental oral treatment for chronic myeloid leukemia (CML) that has shown promising results in initial clinical trials.
“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 Merck CEO Robert Davis. The experimental drug works through a novel mechanism distinct from existing therapies, offering hope for patients whose disease hasn’t responded to current treatments.
This acquisition marks Merck’s third multibillion-dollar purchase in the past year. The company is striving to reduce dependence on Keytruda, which generates more than $30 billion in annual sales—nearly half of Merck’s total revenue. Analysts at BMO Capital Markets predict that TERN-701 could achieve peak sales exceeding $4 billion. The transaction is expected to close in the second quarter of 2026.
Source: Merck Newsroom