Merck is set to acquire Terns Pharmaceuticals in an all-cash deal valued at about $6.7 billion, as the company bolsters its oncology pipeline with an asset positioned for chronic myeloid leukemia. The offer is priced at $53 per share and is expected to close in the second quarter of 2026, subject to antitrust clearance and a majority tender of Terns shares. Terns’ lead candidate TERN-701 is an oral BCR-ABL1 tyrosine kinase inhibitor in early-phase development. The reporting highlights that Phase 1 data presented at the American Society of Hematology showed an overall major molecular response rate of 75% at week 24, with 64% achieving major molecular response. Merck framed the acquisition as expanding its presence in hematology and diversifying its oncology portfolio as Keytruda faces future patent expirations. The transaction also arrives after Merck’s earlier attempt to buy Revolution Medicines was unsuccessful. For the market, the deal reinforces how late-stage investor interest in targeted oncology can translate into rapid M&A, even when headline valuations have been pressured by prior pipeline setbacks.