Merck has successfully completed its acquisition of Terns Pharmaceuticals, marking a step in its strategy to strengthen its oncology pipeline through science-driven innovation. The acquisition brings TERN-701, an investigational therapy for chronic myeloid leukaemia (CML), under Merck’s portfolio, with the company aiming to accelerate its clinical development.

The US Food and Drug Administration (FDA) has granted Breakthrough Therapy Designation to TERN-701 for treating adults with Philadelphia chromosome-positive CML in the chronic phase who have previously undergone multiple lines of therapy. The designation is based on encouraging data from the ongoing phase I/II CARDINAL clinical trial, highlighting the drug’s potential as a differentiated treatment option.

As part of the transaction, Merck acquired all outstanding shares of Terns Pharmaceuticals at USD 53 per share through a cash tender offer. Following the completion of the offer and subsequent merger, Terns has become a wholly owned subsidiary of Merck and will no longer be listed on the Nasdaq Global Select Market.

The acquisition is expected to be accounted for as an asset purchase, resulting in a research and development charge of approximately USD 5.8 billion in 2026. Additional financial impact includes a projected reduction in earnings per share due to development and financing costs associated with advancing TERN-701.

TERN-701 is an oral, investigational allosteric BCR::ABL1 tyrosine kinase inhibitor designed to target the ABL myristoyl pocket. Its mechanism may offer improved outcomes compared to existing therapies for certain CML patients, particularly those with resistance to prior treatments.

Chronic myeloid leukaemia is a slow-progressing blood cancer linked to the Philadelphia chromosome, which drives abnormal white blood cell production. Merck’s broader haematology pipeline continues to advance multiple candidates across leukaemias and related disorders, reinforcing its commitment to developing innovative therapies for patients with unmet medical needs.