Merck agreed to acquire Terns Pharmaceuticals in an all-cash $6.7 billion transaction, aiming to bolster its oncology portfolio as Keytruda approaches the patent cliff. The deal values Terns at $53 per share and is expected to close in the second quarter of 2026, subject to antitrust clearance and a majority tender of shares. Terns’ lead asset, TERN-701, is an oral BCR::ABL1 tyrosine kinase inhibitor in Phase I/II development for chronic myeloid leukemia. Merck framed the candidate as potentially best-in-class for a subset of patients due to a distinct binding mechanism targeting an ABL myristoyl pocket. Merck’s acquisition also reflects a broader strategy to consolidate oncology growth opportunities, with Terns’ progress drawing attention after ASH data indicated major molecular response rates in early studies. The move follows Merck’s failed attempt to acquire another target earlier this year, and it arrives as the company prepares for revenue transitions from blockbuster patent expirations.