Merck agreed to acquire Terns Pharmaceuticals in an all-cash $6.7 billion deal, valuing Terns at about $53 per share. The transaction centers on TERN-701, an oral allosteric BCR::ABL tyrosine kinase inhibitor in development for chronic myeloid leukemia, where Merck is looking to compete in the next treatment cycle. The buyout follows investor attention after Terns’ early clinical updates, including responses reported around the American Society of Hematology meeting. Analysts highlighted that the offer price implies a limited premium, but also positioned TERN-701 as a differentiated mechanism that could challenge Novartis’ Scemblix franchise. Merck expects to close in the second quarter of 2026, subject to antitrust review and a majority tender, underscoring how big pharma is using targeted acquisitions to prepare for patent expiries.