Merck Reduces Terns Acquisition Offer by $1 Billion After Updated Leukemia Data

Merck initially offered $61 per share ($7.7B total) for Terns Pharmaceuticals in early February 2026, but reduced it to $53 per share ($6.7B) after reviewing updated Phase 1 CARDINAL study data for TERN-701, showing a lower MMR achievement rate than previously disclosed125

An unidentified bidder also withdrew after the data update, deeming TERN-701 not sufficiently differentiated or de-risked1

William Blair analysts now view Merck's $6.7B offer as likely to close without counter-bids, expected later in Q2 20261

The deal targets TERN-701, an oral tyrosine kinase inhibitor for chronic myeloid leukemia, positioning Merck against Novartis' Scemblix and bolstering its pipeline post-Keytruda1

Leerink Partners believes the $6.7B price undervalues TERN-701, projecting blockbuster sales up to $6.2B by 20401

Sources:

1. https://www.biospace.com/business/merck-chopped-1b-off-terns-offer-after-seeing-updated-leukemia-data

2. https://www.thebiointel.com/article/merck-cuts-billion-off-terns-leukemia-drug-offer

5. https://www.bizjournals.com/sanfrancisco/news/2026/04/08/cancer-cml-lower-bid-terns-pharmaceuticals-merck.html