Merck expands haematology pipeline with $6.7bn acquisition of Terns Pharmaceuticals

Merck & Co is acquiring Terns Pharmaceuticals for $6.7 billion, a move that’s set to help build out its haematology pipeline.

The deal includes Terns’ oral allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI), a potential best-in-class candidate for chronic myeloid leukaemia (CML).

TERN-701 is currently being evaluated in the phase I/II CARDINAL trial for Philadelphia chromosome-positive (Ph+), chronic phase CML. The participants have had previous treatment with at least one prior TKI treatment failure, suboptimal response or treatment intolerance.

Dr Dean Li, President of Merck Research Laboratories, said: “The first approval of a BCR::ABL1 tyrosine kinase inhibitor 25 years ago transformed the prognosis for many patients with chronic myeloid leukaemia. Despite new therapeutic options, there is significant need for innovative, well-tolerated therapies with faster time to onset of molecular response leading to deeper responses and better disease control.

“Based on early clinical evidence, TERN-701, a novel allosteric BCR::ABL1 inhibitor, may have the potential to provide a meaningfully differentiated option for certain patients living with CML.”

Based on early clinical evidence, TERN-701, a novel allosteric BCR::ABL1 inhibitor, may have the potential to provide a meaningfully differentiated option for certain patients living with CML

Clinical data shows the oral TKI has provided promising major molecular response rates and deep molecular response observed by week 24. This includes responses in those with high disease burden who have received multiple lines of therapy.

Robert Davis, Chairman and Chief Executive Officer, Merck, said: “The acquisition of Terns builds on our growing presence in haematology with TERN-701, a potential best-in-class candidate for the treatment of certain patients with chronic myeloid leukaemia.

“This transaction further diversifies and strengthens our position in oncology as we continue to look for opportunities to broaden our portfolio into other therapeutic areas.”

The proposed transaction is subject to customary closing conditions and is expected to be finalised in Q2 of 2026.

This development arrives in final weeks before Kai Beckmann joins as Merck’s new CEO, where he will replace Belén Garijo at the end of next month.