Merck is set to acquire Terns Pharmaceuticals in an all-cash $6.7 billion transaction, aiming to bolster its oncology portfolio with TERN-701. The bid values Terns at $53 per share and is expected to close in the second quarter of 2026, subject to antitrust clearance and shareholder tender. The acquisition centers on TERN-701, a BCR-ABL1 tyrosine kinase inhibitor in early-phase development for chronic myeloid leukemia, with Phase 1 data reported on major molecular response rates at week 24. Analysts and investors have debated whether the purchase price reflects the asset’s peak sales potential. Merck framed the deal as a diversification and strengthening move within oncology as key patent expirations approach for blockbuster franchises.