Merck to Acquire Terns Pharmaceuticals in $6.7 Billion Strategic Expansion

Merck & Co. Inc. has announced a definitive agreement to acquire Terns Pharmaceuticals, Inc. in a transaction valued at approximately $6.7 billion. The deal, which has received unanimous approval from the boards of directors of both companies, represents a significant move by the pharmaceutical giant to bolster its hematology pipeline. Merck will offer $53.00 per share for Terns, a figure that reflects a 31% premium over the 60-day average price calculated as of March 24, 2026.

At the center of this acquisition is TERN-701, a novel clinical-stage candidate currently being developed for the treatment of Chronic Myeloid Leukemia (CML). By integrating this asset into its existing portfolio, Merck aims to enhance its capabilities in addressing complex hematological conditions. This strategic alignment underscores the company's ongoing commitment to innovation and its focus on securing high-potential therapeutic candidates that can provide meaningful advancements for patients.

The transaction is subject to customary closing conditions, including the requirement that a majority of Terns Pharmaceuticals stockholders tender their shares. Merck anticipates that the acquisition will be finalized in the second quarter of 2026. As part of the financial integration, the company expects to incur a charge of approximately $5.8 billion, or roughly $2.35 per share, which will be reflected in its results for both the second quarter and the full fiscal year 2026.

This deal highlights the continued vitality of the American pharmaceutical sector, where private-sector investment and strategic consolidation drive the development of next-generation medical treatments. By streamlining its research and development pipeline through targeted acquisitions, Merck is positioning itself to maintain its competitive edge in the global marketplace while continuing to prioritize the delivery of breakthrough therapies to the American public.