On March 25, 2026, MSD (known as Merck & Co. in the US) announced a definitive agreement to buy cancer specialist Terns Pharmaceuticals for $6.7 billion ($53 per share in cash). This acquisition is part of a strategic string of multibillion-dollar deals to secure the company’s post-Keytruda future.
Technological Highlights and Market Potential:
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Strategic Asset TERN-701: An oral allosteric BCR-ABL1 tyrosine kinase inhibitor (TKI) developed for Philadelphia chromosome-positive (Ph+) chronic myeloid leukaemia (CML).
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“Unprecedented” Clinical Data: Phase I results showed an overall major molecular response (MMR) rate of 75%at week 24, more than double the response rate of Novartis’ blockbuster Scemblix.
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Superior Patient Convenience: Unlike Scemblix, which must be taken on an empty stomach, TERN-701 has no food effect and supports once-daily dosing, significantly improving patient adherence.
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Pipeline Diversification: Following the acquisitions of Cidara Therapeutics ($9.2bn) and Verona Pharmaceuticals ($10bn) in 2025, the Terns deal further strengthens MSD’s oncology position as Keytruda faces looming patent expiry.
Analysts at William Blair stated that TERN-701 is well-positioned to “disrupt the treatment paradigm of CML” and challenge Novartis’ current market dominance. The transaction is expected to close in the second quarter of 2026.