Merck to Acquire Terns Pharmaceuticals for $6.7 Billion, Betting on TERN-701 to Challenge Novartis' Scemblix in CML

Merck announced on March 25, 2026, a definitive agreement to acquire Terns Pharmaceuticals for $53 per share in cash, valuing the company at approximately $6.7 billion equity value ($5.7 billion net of cash). 1 2 3

The deal targets TERN-701, an investigational oral allosteric BCR-ABL1 inhibitor in Phase 1/2 for chronic myeloid leukemia (CML), showing promising efficacy and safety in trials.2 3 4

Analysts view TERN-701 as a potential best-in-class drug that could challenge Novartis' Scemblix, with peak sales estimates over $4 billion and strong molecular response rates up to 75% at 24 weeks.3 4

The acquisition expands Merck's hematology pipeline amid Keytruda's looming patent expiry in 2028; expected to close in Q2 2026, subject to antitrust approval and stockholder tender.2 4

The offer represents a 31% premium to Terns' 60-day VWAP and 6% over March 24 closing price, though some analysts believe it undervalues TERN-701 and anticipate possible competing bids.3 4 5