Merck to buy Terns Pharmaceuticals for $6.7B to bolster cancer pipeline

U.S. drugmaker Merck & Co. is reported to be in advanced talks to acquire clinical‑stage Terns Pharmaceuticals, a move aimed at bolstering its hematology and oncology pipeline. Financial Times-led coverage puts the deal in the neighborhood of $6 billion in cash, while market chatter has cited a per‑share figure near $53—implying an equity value close to $6.7 billion. No formal announcement had been issued at the time of reporting.

Terns’ lead asset, TERN‑701, is being developed for chronic myeloid leukemia (CML) and has shown promising early‑stage response rates in clinical presentations, drawing strategic interest from larger oncology players. Company filings and conference disclosures highlight TERN‑701 as a potential near‑term value driver that could complement Merck’s existing cancer portfolio if clinical and regulatory milestones are met.

Market reaction to the reports lifted Terns’ shares as investors priced in a potential takeover premium; press coverage referenced Bloomberg figures for enterprise‑level valuation comparisons. Observers note the transaction would follow Merck’s recent acquisition activity as the company seeks to diversify revenue sources beyond its blockbuster immuno‑oncology franchise.

Strategically, the deal fits into Merck’s response to the looming patent and pricing challenges for Keytruda, its best‑selling cancer drug whose U.S. patent protections and government price‑setting risks are expected to exert pressure starting around 2028. Building or buying differentiated oncology assets is a clear priority for Merck as it seeks to offset potential revenue declines.

Analysts caution that while TERN‑701 could be a meaningful addition if later‑stage data confirm early results, the ultimate value will depend on head‑to‑head efficacy, pricing negotiations, payer dynamics and the timeline for regulatory approvals. In the near term, markets will focus on an official deal announcement, the definitive price and any regulatory conditions tied to the transaction.