Merck & Co., Inc., also known as just Merck or MSD outside of North America, will acquire Terns Pharmaceuticals Inc., a clinical-stage oncology (cancer) company. The two companies announced today, March 25th, 2026, that they have entered into a definitive agreement.
Merck’s subsidiary, Thailand Merger Sub, Inc., will take over Terns for $53 per share in cash for an equity value of approximately $6.7 billion.
In a company press release, Robert M. Davis, CEO and Chairman of Merck, said:
“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. 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.”
Terns’ principal candidate is called TERN-701, an experimental oral tablet. It is being tested in a clinical study to determine whether it is effective and safe for humans. Trial participants include patients with chronic myeloid leukemia (CML), a type of blood cancer. They have already taken at least one previous medication, which was not effective, stopped working, or caused severe or intolerable side effects.
Orphan Drug
The US Food and Drug Administration (FDA) granted Orphan Drug Designation for TERN-701 for CML treatment. Orphan drugs are medications that are developed for the treatment of rare diseases, or diseases that affect very few people. Examples of orphan drugs include Kalydeco for cystic fibrosis, and Soliris for rare blood disorders.
In a Terns press release, Amy Burroughs, chief executive officer of Terns, said:
“This acquisition reflects our team’s deep commitment to innovation in oncology and developing high impact medicines. 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.”
Clinical Trial Data Promising
Early clinical study data suggests that the drug is very effective for most patients. In many cases, within approximately six months, the amount of cancer in the patient’s body was greatly reduced. For patients with advanced CML, and who had already undergone other treatments unsuccessfully, this was wonderful news.
Side effects so far have been mild. Only a small number of trial participants have had serious side effects or needed to stop treatment.
Dr. Dean Y. Li, President, Merck Research Laboratories, said:
“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.”
“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.”
