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Merck to buy Terns Pharmaceuticals for $6.7 billion to boost cancer pipeline

CNBC
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Merck announced a $6.7 billion cash acquisition of Terns Pharmaceuticals at $53 per share, a 6% premium over Tuesday’s closing price, to strengthen its cancer pipeline ahead of Keytruda’s 2028 patent expiration. The deal, expected to close in Q2 2026, marks Merck’s third multibillion-dollar purchase in a year, underscoring its push to offset looming revenue losses from Keytruda’s generic competition. Terns’ lead drug targets leukemia and could rival Novartis’ Scemblix, with analysts projecting multibillion-dollar potential after promising early-trial results late last year. Terns’ stock surged 5.3% in premarket trading, while Merck’s remained flat, reflecting investor confidence in the acquisition’s strategic value over immediate shareholder impact. The move highlights pharma’s aggressive M&A trend as blockbuster drugs near patent cliffs, prioritizing high-potential assets to sustain long-term growth.
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In this articlePharma giant Merck is buying U.S. biotech firm Terns Pharmaceuticals for $6.7 billion, the company said Wednesday.This is the third multibillion-dollar acquisition for Merck over the past year as the company looks to bulk up its portfolio ahead of its best-selling cancer drug Keytruda losing patent protection in 2028. Merck will acquire Terns for $53 per share in cash for an equity value of about $6.7 billion. That marks a 6% premium to Tuesday's closing price, according to CNBC's calculations. The deal is expected to close in the second quarter.Terns is developing a medicine for a type of leukemia that analysts see as a multibillion-dollar drug that could eventually rival Novartis' Scemblix. Terns' stock has skyrocketed in recent months with investor excitement building over the experimental drug, which showed promising results in an early trial late last year.Terns shares rose 5.3% while Merck's stock was largely flat in premarket trading on Wednesday. Shares of Terns were up as much as 15% in earlier trading after media reports said the companies were nearing a deal.This is breaking news. Please refresh for updates. Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.

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