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Mergers & AcquisitionsMedium•5 May 2026•

1 min read

Merck Completes $5.8 Billion Acquisition of Terns Pharmaceuticals to Bolster Oncology Pipeline

Key Facts

1Merck completed the acquisition of Terns Pharmaceuticals for $53.00 per share in cash.

2The acquisition is expected to result in a charge to R&D expense of approximately $5.8 billion for Merck.

Merck has finalized its acquisition of Terns Pharmaceuticals for a cash consideration of $53.00 per share, totaling approximately $5.8 billion. The strategic move centers on integrating TERN-701, a promising oral treatment for chronic myeloid leukemia, into Merck's oncology pipeline. As a result of the transaction, Merck expects to record a non-recurring R&D expense charge of nearly $5.8 billion. The acquisition follows the drug's recent Breakthrough Therapy Designation from the FDA, signaling high clinical potential. While the deal strengthens Merck's long-term therapeutic portfolio, the substantial financial charge may impact near-term earnings performance. This transaction underscores the ongoing trend of high-value M&A activity within the global pharmaceutical sector.