Merck (MSD outside North America) agreed to acquire Terns Pharmaceuticals for about $6.7 billion in an all-cash deal, adding TERN-701 to its oncology portfolio. Merck will pay $53 per share, and the transaction is expected to close in the second quarter of 2026, subject to antitrust clearance and tender conditions. Terns’ lead candidate, TERN-701, is an oral BCR::ABL1 tyrosine kinase inhibitor in early-phase development for chronic myeloid leukemia. The company said the Phase I/II CARDINAL trial showed major molecular response rates at week 24, with TERN-701 designed to bind an allosteric myristoyl pocket distinct from traditional TKIs. The deal follows Merck’s failed attempt to buy Revolution Medicines earlier in the year, and it comes as Keytruda’s patent cliff approaches. Analysts and company commentary framed TERN-701 as a potential best-in-class option for a defined CML population, building on Merck’s growing hematology-oncology franchise. In deal terms, Terns becomes another example of big-pharma consolidation driven by pipeline replenishment ahead of exclusivity expirations, with structured integration tied to clinical data and platformable mechanisms.