Merck to acquire Terns Pharmaceuticals for $6.7B

This marks Merck’s 3rd multibillion-dollar acquisition successful the past twelvemonth arsenic the institution looks to fortify its portfolio up of its top-selling crab cause Keytruda losing patent extortion successful 2028.

Terns is processing TERN-701, an oral therapy for chronic myeloid leukemia. Phase 1 proceedings information reported past December showed a large molecular effect complaint of up to 75% astatine 24 weeks, with a tolerable information illustration that supports regular dosing.

“This transaction further diversifies and strengthens our presumption successful oncology arsenic we proceed to look for opportunities to broaden our portfolio into different therapeutic areas,” Merck CEO Robert Davis said successful a statement.

Terns’ shares person risen sharply successful caller months amid capitalist involvement successful its experimental leukemia drug. Under the presumption of the deal, Merck volition acquisition each outstanding Terns shares astatine a 31% premium implicit the biotech’s mean banal terms implicit the erstwhile 60 days.

Shares of Merck added 2% astatine astir $119 pursuing the announcement, portion Terns' banal was up 5% astatine astir $53.

The transaction is expected to adjacent successful the 2nd quarter, pending regulatory approval.