Merck Pursues $6 Billion Big Deal for Rare Blood Cancer Drug Acquisition

Merck & Co., Inc. has entered into a definitive agreement to acquire Terns Pharmaceuticals, Inc. (TERN) in an all-cash transaction at $53 per share, valuing the company’s enterprise at approximately $6.7 billion. The acquisition is designed to bolster Merck’s hematologic malignancies and oncology pipeline, with particular emphasis on securing TERN-701, an oral candidate for chronic myeloid leukemia (CML) that has been granted orphan drug designation by the U.S. Food and Drug Administration. The transaction is expected to close following a tender offer and U.S. antitrust review, and Merck plans to record a one-time expense of around $5.8 billion in its second-quarter 2026 financial results.

Terns Pharmaceuticals is currently advancing the global Phase 1/2 CARDINAL trial of TERN-701 in CML patients, accelerating data collection ahead of the anticipated release of key efficacy and safety results in the second half of 2025. In its most recent quarterly earnings report, the company reiterated its clinical development strategy focused on small-molecule therapeutics for serious conditions such as CML and obesity. ()

Headquartered in Foster City, California, Terns Pharmaceuticals is a clinical-stage biotech specializing in the development of small-molecule drugs for oncology and metabolic disorders. As major pharmaceutical companies face patent expirations for blockbusters like Keytruda, they are aggressively securing next-generation hematology and oncology assets. This deal underscores the ongoing competition among Big Pharma to acquire or partner on rare blood cancer targeted therapies. ()