Merck to buy Terns Pharmaceuticals for $6.7 billion to boost cancer pipeline Merck announced on Wednesday that it will acquire U.S. biotech firm Terns Pharmaceuticals for $6.7 billion, marking the third major acquisition the company has made in the past year. The deal involves Merck purchasing Terns at $53 per share in cash, valuing the company at approximately $6.7 billion. This represents a 6% premium over Terns’ closing stock price on Tuesday, according to CNBC’s calculations. The transaction is expected to close in the second quarter of the year. The acquisition is part of Merck’s strategy to strengthen its portfolio as its top-selling cancer drug, Keytruda, faces the loss of patent protection in 2028. Terns is developing a potential treatment for a specific type of leukemia, which analysts believe could become a multibillion-dollar drug. The therapy is positioned to compete with Novartis’ Scemblix, a currently successful treatment for the same condition. Terns’ stock has experienced significant growth in recent months, driven by investor optimism surrounding its experimental drug. The medication showed promising results in an early trial conducted late last year, fueling market speculation. On Wednesday, Terns shares surged as much as 15% in early trading after media reports indicated the companies were nearing a deal. The stock had already risen over 5.3% in premarket trading, reflecting heightened investor interest. Terns’ stock has also seen a substantial increase over the past year, underscoring the market’s confidence in its pipeline. The acquisition underscores Merck’s commitment to expanding its oncology offerings amid the impending patent expiration of Keytruda, which has been a cornerstone of its revenue for years.#novartis #merck #terns_pharmaceuticals #keytruda #scemblix
