Merck struck a large cash acquisition of Terns Pharmaceuticals as it looks to fortify its oncology portfolio ahead of Keytruda revenue erosion. Merck agreed to buy Terns for about $6.7 billion in an all-cash deal, valuing Terns at roughly $53 per share, a premium to the prior close. The transaction centers on TERN-701, an oral allosteric BCR::ABL tyrosine kinase inhibitor for chronic myeloid leukemia, designed to challenge the standard-of-care from Novartis’ Scemblix franchise. In describing the asset’s early development, Terns pointed to “unprecedented” Phase 1/2 signals, including responses in patients with higher disease burden and a dosing convenience profile for a chronic indication. Merck framed the move as pipeline replenishment as Keytruda approaches loss of exclusivity. The deal also illustrates how big pharma continues to prioritize de-risked, late-stage oncology assets—especially when patent cliffs are pressuring internal R&D returns.