Merck Announces $6.7 Billion Acquisition of Terns Pharmaceuticals Following Drug Data

Merck & Co. announced last month an agreement to acquire Terns Pharmaceuticals Inc. 7 billion in cash. The acquisition targets Terns' portfolio, including an experimental drug for leukemia. The deal includes $28 per share for Terns' outstanding shares, representing a 102% premium over the stock's closing price on the day before the announcement.

Terns' lead candidate, TERN-701, is an oral treatment for acute myeloid leukemia in development. Phase 1 trial data released earlier this year showed positive results, including high response rates among patients. The drug targets the menin protein, a mechanism aimed at addressing relapsed or refractory cases.

Deal The acquisition comes amid growing interest in oncology treatments.

Terns, based in Foster City, California, focuses on liver and oncology therapies. Merck, headquartered in Rahway, New Jersey, seeks to bolster its pipeline through this purchase. Negotiations for the deal reportedly began after the positive data readout for TERN-701.

According to STAT News, Merck valued the asset based on projected market potential and competitive risks in the leukemia space. 7 billion price reflects upfront payment plus potential milestones.

Terns will receive the cash consideration upon closing, expected in the first half of 2025, pending regulatory approvals.

U.S. Federal Trade Commission. Employees and ongoing trials at Terns are anticipated to integrate into Merck's operations. This acquisition affects investors in both companies, with Terns' stock surging on the announcement.

Broader implications include accelerated development of TERN-701 under Merck's resources. The leukemia treatment space involves patients with limited options, and the drug's progress could influence future therapies.