Merck agreed to buy Terns Pharmaceuticals for $6.7 billion in cash, aiming to secure TERN-701, an oral allosteric BCR::ABL tyrosine kinase inhibitor candidate in chronic myeloid leukemia. The deal values Terns at $53 per share and is expected to close in the second quarter, providing Merck a new asset ahead of Keytruda’s loss of exclusivity in 2028. Analysts framed the transaction as a strategic pipeline replenishment move, with TERN-701 positioned to challenge Novartis’ Scemblix franchise if ongoing development confirms differentiation. Terns’ program received orphan drug designation from the FDA and has shown efficacy and safety signals in early testing. The acquisition highlights how large oncology portfolios are still being rebuilt through late-stage clinical or differentiated-mechanism deals—particularly as competitive dynamics intensify in major leukemia categories.