MSD to Acquire Terns Pharmaceuticals for $6.7 Billion – TERN-701 BCR::ABL1 Inhibitor Targets Chronic Myeloid Leukemia

Merck & Co., Inc. (MSD; NYSE: MRK) announced a definitive agreement to acquire Terns Pharmaceuticals, Inc. (NASDAQ: TERN) for $53.00 per share in cash, representing an approximate equity value of $6.7 billion ($5.7 billion net of acquired cash). The transaction, expected to close Q3 2026, adds TERN-701, an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI), to Merck’s expanding hematology franchise, with potential to become a best-in-class therapy for chronic myeloid leukemia (CML) patients with treatment failure, suboptimal response, or intolerance to prior TKIs.

Transaction Overview

TERN-701 Asset Profile

Strategic Context & Competitive Position

• Clinical Timeline: CARDINAL Phase I/II data 2026–2027; potential accelerated approval based on cytogenetic/molecular response rates; Phase III confirmatory initiation 2027
• Revenue Forecast: Peak sales $1.5–2.5 billion annually assuming approval in 2nd/3rd-line CML and front-line combination potential; risk-adjusted NPV supports $6.7B valuation (~12x peak sales)

Forward‑Looking Statements
This brief contains forward‑looking statements regarding transaction closing, TERN-701 clinical outcomes, and Merck hematology franchise expansion. Actual results may differ due to regulatory approval timelines, competitive dynamics with asciminib and ponatinib, and integration execution for the Terns acquisition.-Fineline Info & Tech