Merck & Co. agreed to acquire Terns Pharmaceuticals in an all-cash $6.7 billion deal, positioning TERN-701 as a potential differentiated option for chronic myeloid leukemia. The transaction, valued at $53 per share, is expected to close in the second quarter of 2026, pending antitrust clearance and a majority tender of Terns shares. Terns’ lead asset is an oral BCR::ABL1 tyrosine kinase inhibitor that binds to the ABL myristoyl pocket, aiming to compete on mechanism with established CML therapies including Novartis’ Scemblix (asciminib). The company’s CARDINAL Phase I/II trial (NCT06163430) reported major molecular response rates in earlier data, helping drive investor attention. Analysts and market participants are debating the offer price and whether it creates conditions for a bidding contest. Even so, Merck is also facing patent-driven revenue pressure as Keytruda approaches exclusivity transitions, making additional hematology-oncology assets a key strategic priority.