
Merck to buy Terns to accelerate CML program with allosteric inhibitor TERN-701
Merck will acquire Terns Pharmaceuticals for about $6.7 billion in cash, expanding its hematology portfolio with TERN-701, an oral allosteric BCR-ABL1 inhibitor in Phase 1/2 for Philadelphia chromosome-positive chronic myeloid leukemia (CML). The transaction, approved by both boards, is expected to close in the second quarter of 2026 and will be accounted as an asset acquisition with an approximate $5.8 billion impact on 2026 GAAP/non-GAAP results. TERN-701 has shown encouraging early activity and carries FDA Orphan Drug Designation from 2024, underscoring its potential as a differentiated CML therapy.

