Prime Highlights
- Merck is closing in on a $6 billion all-cash deal to acquire Terns Pharmaceuticals, with negotiations at an advanced stage and a formal agreement potentially days away.
- Terns Pharma shares jumped roughly 10 percent in after-hours trading following the report, signaling strong market confidence in the deal.
Key Facts
- Keytruda, Merck’s top-selling cancer drug generating around $30 billion annually, faces patent expiry as early as 2028, making pipeline acquisitions urgent.
- Terns’ lead candidate TERN-701 is currently in Phase 1 trials for relapsed and refractory chronic myeloid leukemia, a rare blood cancer with limited treatment options.
Background
U.S. drugmaker Merck & Co. is close to a $6 billion all-cash deal to buy Terns Pharmaceuticals, showing that mergers and acquisitions are picking up across the global healthcare industry.
According to the report, the two parties reached an advanced stage of negotiations, which would lead to a formal agreement within several days. The acquisition would value Terns at premium also stands as another milestone for Merck, which seeks to enhance its cancer treatment development program.
Terns Pharmaceuticals specializes in developing treatments for chronic myeloid lukemia, a rare blood and bone cancer. Its lead drug is expected to complement existing therapies in Merck’s growing cancer portfolio.
For Merck & Co. this deal is a strategic step as it prepares for the 2028 patent expiry of its key drug Keytruda, which brings in a large share of its revenue. Analysts say the company is increasing acquisitions and partnerships to reduce future risks and support steady long-term growth.
Terns Pharma shares jumped roughly 10 percent in after-hours trading following the report, highlighting positive investor sentiment around the potential transaction.
The proposed acquisition reflects a pharmaceutical industry trend in which large drugmakers acquire biotech companies to obtain new product pipelines while solving their upcoming patent expiration problems.
If the Terns agreement reaches completion, it will join the recent Merck transactions, which demonstrate the company’s commitment to transforming its business operations in response to changes in the oncology market.
