Merck announces plans to acquire Terns Pharmaceuticals in a $6.7 billion deal, gaining TERN-701, a novel allosteric BCR::ABL1 inhibitor currently in the Phase 1/2 CARDINAL trial for chronic myeloid leukemia.
Written By: Karthik Teja Macharla, PharmD
Reviewed By: Pharmacally Editorial Team
Merck & Co. has announced a definitive agreement to acquire Terns Pharmaceuticals, strengthening its hematology pipeline with the addition of TERN-701, an investigational therapy being developed for Chronic Myeloid Leukemia. The acquisition highlights Merck’s continued strategy to expand its oncology portfolio with innovative targeted therapies.
TERN-701 is a novel investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI) designed to bind to the ABL myristoyl pocket, with the potential to improve the efficacy, safety, and convenience of current CML treatments. The therapy is intended for patients with Philadelphia chromosome-positive (Ph+) chronic phase CML, particularly those who have experienced treatment failure, intolerance, or suboptimal response to existing TKIs.
The candidate is currently being evaluated in the Phase 1/2 CARDINAL clinical trial (NCT06163430), a global multicentre dose-escalation and dose-expansion study assessing the safety, tolerability, and efficacy of TERN-701. The dose-escalation portion of the trial was completed in January 2025 with no dose-limiting toxicities observed up to the maximum dose of 500 mg once daily. The ongoing expansion phase is evaluating 320 mg and 500 mg once-daily cohorts, with up to 40 patients in each arm.
In January 2026, investigators added an additional cohort evaluating 500 mg once daily in patients harbouring BCR::ABL1 resistance mutations, including T315I, M244V, and F359I/C/V, aiming to better characterize activity in difficult-to-treat populations.
Early clinical data have demonstrated encouraging rates of major molecular response and deep molecular response by week 24, including in patients with high disease burden who had received multiple prior therapies, including other allosteric TKIs. Most treatment-emergent adverse events have been low grade, with a low incidence of severe adverse events and treatment discontinuations. Investigators have also reported no clinically meaningful changes in blood pressure and low rates of lipase elevation.
Chronic myeloid leukemia is a slow-growing blood cancer caused by the BCR::ABL1 fusion protein formed by the Philadelphia chromosome, and despite advances with TKIs, many patients still need therapies that deliver faster and deeper molecular responses.
Transaction Details
Merck will acquire Terns in an all-cash transaction valued at approximately $6.7 billion, purchasing the company for $53 per share. The offer represents a 31% premium to the 60-day and 42% premium to the 90-day volume-weighted average stock price as of March 24, 2026, and equates to approximately $5.7 billion net of acquired cash.
The deal has been approved by the boards of both companies and will be completed through a tender offer for all outstanding shares of Terns. The transaction remains subject to customary closing conditions, including regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act and approval by Tern’s shareholders. Merck expects the acquisition to close in the second quarter of 2026 and to record an estimated $5.8 billion charge related to the asset acquisition in its 2026 financial results
Reference
Merck to Acquire Terns Pharmaceuticals, Inc., Expanding Its Hematology Pipeline With TERN-701, a Novel Candidate for Chronic Myeloid Leukemia (CML), 25 March 2026, Merck to Acquire Terns Pharmaceuticals, Inc., Expanding Its Hematology Pipeline With TERN-701, a Novel Candidate for Chronic Myeloid Leukemia (CML) – Merck.com
Merck to Acquire Terns Pharmaceuticals, Inc., Expanding Its Hematology Pipeline With TERN-701, a Novel Candidate for Chronic Myeloid Leukemia (CML), 25 March 2026, https://ir.ternspharma.com/news-releases/news-release-details/merck-acquire-terns-pharmaceuticals-inc-expanding-its-hematology
About the Writer
Karthik Teja Macharla, PharmD is a Pharm.D. graduate with a strong interest in clinical research, pharmacovigilance, and medical writing. In his words, he is passionate about converting complex medical information into clear, evidence-based scientific communication, committed to contributing to patient safety and advancing healthcare through accurate and impactful medical content.