Merck & Co. is reportedly nearing a USD 6 billion acquisition of Terns Pharmaceuticals, as part of its strategy to strengthen its oncology portfolio and prepare for future growth.

The proposed transaction, expected to be an all-cash deal, is currently in advanced stages of negotiation and could be finalized in the coming days, subject to customary approvals.

This potential acquisition aligns with Merck’s broader effort to bolster its cancer pipeline, particularly as it prepares for the anticipated loss of exclusivity of its blockbuster oncology drug, Keytruda, around 2028.

Terns Pharmaceuticals is a clinical-stage biotechnology company focused on developing therapies for oncology indications, including chronic myeloid leukemia (CML), a rare blood and bone cancer. Its lead candidate, an oral BCR-ABL inhibitor currently in development, is positioned as a potential next-generation treatment option in this space.

The acquisition would provide Merck with access to innovative oncology assets and strengthen its pipeline in targeted cancer therapies, reinforcing its leadership in one of the fastest-growing segments of the pharmaceutical industry. The move also reflects Merck’s ongoing strategy of deploying capital through strategic acquisitions to offset potential revenue gaps from upcoming patent expiries.

In recent years, Merck has accelerated dealmaking activity, pursuing high-value acquisitions and partnerships to diversify its portfolio and build long-term growth drivers. The addition of Terns would further complement these efforts by expanding its presence in hematologic cancers and enhancing its next-generation oncology capabilities.

If completed, the transaction would mark another significant step in Merck’s transformation strategy, focused on strengthening its pipeline, advancing innovation, and maintaining leadership in oncology amid increasing global competition.