Merck snaps up Terns Pharmaceuticals to expand its oncology pipeline
Announced on 25 March 2026, Merck & Co. (NJ, USA) have made a move on Terns Pharmaceuticals (CA, USA), with plans to buy the company for an approximate value of US $6.7 billion.
Terns Pharmaceuticals is a clinical-stage biopharmaceutical company that specializes in developing small molecule medicines primarily targeting oncology, obesity and metabolic dysfunction-associated steatohepatitis. With the approaching loss of exclusivity for Keytruda (pembrolizumab), Merck’s most successful product approved for treating numerous types of cancer including melanoma, cervical cancer, non-small cell lung cancer and gastric cancer, the company is seeking to combat this revenue gap by restocking its oncology pipeline.
Cue TERN-701, Terns’ lead asset and prized possession included in the deal. TERN-701 is a highly selective, oral allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI) that is currently being assessed in the Phase I/II CARDINAL trial. Having been granted Orphan Drug Designation in March 2024 by the US FDA (MD, USA), the drug has the potential to improve upon the safety, efficacy and convenience of existing treatments for chronic myeloid leukemia (CML).
“The first approval of a BCR::ABL1 TKI 25 years ago transformed the prognosis for many patients with chronic myeloid leukemia. 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,” commented Dr Dean Y Li, President of Merck Research Laboratories.
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In a presentation at the 2025 American Society of Hematology (6–9 December; FL, USA), TERN-701 demonstrated a significant reduction in diseased white blood cells in patients’ bloodstreams, with Terns describing the results as “unprecedented” among CML treatments, despite the study primarily focusing on safety. Clinical trials to date have shown promising rates of major molecular response and deep molecular response, even in patients with high disease burden who had undergone multiple prior therapies, including treatment with allosteric TKIs.
“By working together, we will advance TERN-701, leveraging the deep expertise and significant resources at Merck, a global biopharmaceutical leader with a proven track record of delivering cancer breakthroughs for patients who need them most. I am immensely proud of the Terns team and our work towards making a difference for people living with CML. Finally, we extend our heartfelt thanks to the investigators, patients, and community advocates whose dedication and support make the development of TERN-701 possible,” commented Amy Burroughs, CEO at Terns.
