Merck agreed to acquire Terns Pharmaceuticals in an all-cash $6.7 billion transaction, valuing the company at $53 per share and positioning Merck to bolster its hematology-oncology pipeline. The deal is expected to close in Q2 2026, subject to antitrust clearance and a majority tender of Terns shares. Terns’ lead program, TERN-701, is an oral BCR-ABL1 tyrosine kinase inhibitor in early-phase development for chronic myeloid leukemia (CML). The asset is designed to bind the ABL myristoyl pocket, using an allosteric mechanism distinct from existing CML TKIs, including Novartis’ Scemblix (asciminib). Merck has cited early clinical signals from the CARDINAL Phase I/II study (NCT06163430), including major molecular response outcomes reported at week 24. The acquisition follows Merck’s broader oncology consolidation efforts amid the upcoming patent cliff for Keytruda and other products. Analysts and company leaders framed the transaction as a potential “differentiated option” in CML, with an eye toward building durability as blockbuster revenues face exclusivity expirations later in the decade.