Merck & Co. invests $6.7 billion to acquire Terns Pharmaceuticals, expanding its oncology drug portfolio.

MaticHoleFiller · 2026-04-09T22:32:32+00:00

Merck announced that it will acquire the biotech company Terns Pharmaceuticals for $6.7 billion. The offer price is $53 per share, aiming to bolster its oncology drug R&D pipeline, particularly as its tumor drug Corveda patent approaches expiration. The acquisition will include Terns’ investigational drug TERN-701, which is expected to be completed in 2026.

MaticHoleFiller

2026-04-09 22:32:32

Abstract generation in progress

Merck announced on Wednesday that it will acquire biotechnology company Terns Pharma at a valuation of up to $6.7 billion. The pharmaceutical giant is rushing to strengthen its oncology drug development pipeline ahead of the upcoming patent expiration of its blockbuster cancer drug, Keytruda.

The acquisition offer from Merck is $53 per share, a 6% premium over Terns Pharma’s closing price on the previous trading day. Before the announcement, Terns Pharma’s stock price surged 5.5% in pre-market trading.

Through this acquisition, Merck will gain rights to Terns Pharma’s investigational drug TERN-701. The drug is currently in clinical trials for the treatment of chronic myeloid leukemia — a cancer originating in the bone marrow that causes abnormal proliferation of leukemia cells.

The deal is expected to close in the second quarter of 2026.

Facing the upcoming patent expiration of Keytruda, Merck has been seeking new growth points beyond this core oncology drug.

Last month, the company announced plans to establish an independent division for its oncology business.

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Editor: Guo Mingyu

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