RAHWAY, New Jersey & FOSTER CITY, California, March 25, 2026
Merck & Co. has announced a definitive agreement to acquire Terns Pharmaceuticals for approximately $6.7 billion, significantly expanding its hematology and oncology pipeline. The acquisition is centered on TERN-701, a novel allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI) currently in Phase 1/2 development for chronic myeloid leukemia (CML), a serious blood cancer with ongoing unmet treatment needs.
Strategic Acquisition Expands Oncology Pipeline
The acquisition represents a major step in Merck’s strategy to strengthen its oncology portfolio through innovative and targeted therapies. Under the terms of the agreement, Merck will acquire Terns for $53 per share in cash, reflecting an approximate equity value of $6.7 billion and a notable premium to recent trading prices. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and shareholder participation.
TERN-701, Terns’ lead investigational candidate, is designed as a next-generation oral therapy targeting the BCR::ABL1 fusion protein, which is a primary driver of CML. The drug is currently being evaluated in the Phase 1/2 CARDINAL clinical trial, focusing on patients who have experienced treatment resistance, suboptimal response, or intolerance to prior tyrosine kinase inhibitors, highlighting its relevance in a difficult-to-treat patient population.
TERN-701 Shows Promising Early Clinical Potential
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Early clinical findings suggest that TERN-701 demonstrates encouraging efficacy and a favorable safety profile, positioning it as a potentially differentiated therapy in the treatment of CML. Data from ongoing studies indicate that the drug has achieved meaningful molecular responses, including deep and major responses within 24 weeks, even among heavily pretreated patients.
The therapy has also shown activity in patients previously treated with multiple lines of therapy, including other TKIs, suggesting its ability to overcome resistance mechanisms. Importantly, the majority of treatment-emergent adverse events have been reported as low grade, with a low incidence of severe toxicities or treatment discontinuations, supporting its tolerability.
TERN-701’s mechanism as an allosteric inhibitor distinguishes it from traditional ATP-competitive TKIs, potentially enabling improved selectivity, enhanced safety, and better long-term disease control. The investigational drug has also received Orphan Drug Designation from the FDA, reinforcing its importance in addressing rare hematologic conditions and supporting accelerated development pathways.
Advancing Innovation in Hematology and Targeted Therapies
The acquisition aligns with broader industry trends that emphasize precision medicine, targeted oncology therapies, and next-generation kinase inhibitors. Despite significant advances in CML treatment over the past decades, there remains a need for therapies that provide faster, deeper, and more durable responses while maintaining strong safety profiles.
By integrating Terns’ innovative pipeline into its operations, Merck aims to leverage its global research, development, and commercialization capabilities to accelerate the advancement of TERN-701. This move strengthens Merck’s presence in hematologic malignancies and complements its existing oncology portfolio, positioning the company to address evolving clinical needs in cancer care.
Furthermore, the transaction reflects Merck’s ongoing commitment to expanding its pipeline through strategic acquisitions, enabling access to novel technologies and high-impact therapeutic candidates that can transform patient outcomes in complex diseases.
The planned acquisition of Terns Pharmaceuticals marks a strategically significant milestone for Merck, reinforcing its leadership in oncology and hematology. With strong early clinical data, a differentiated mechanism of action, and regulatory support, TERN-701 has the potential to address critical unmet needs in CML treatment.
As the transaction progresses toward completion, the addition of Terns’ assets is expected to accelerate innovation in targeted cancer therapies, further strengthening Merck’s position as a global leader in biopharmaceutical research and precision medicine.
Source: Merck, Terns Pharmaceuticals press release
