Merck to buy Terns Pharmaceuticals for $6.7bn

(Sharecast News) - Merck said on Wednesday that it has agreed to buy Terns Pharmaceuticals, a clinical-stage oncology company, for $6.7bn. Under the terms of the deal, Merck will pay $53 per share in cash.

Terns' lead candidate, TERN-701, is a novel investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor (TKI) currently being evaluated in the Phase 1/2 CARDINAL trial for patients with Philadelphia chromosome-positive (Ph+), chronic phase chronic myeloid leukemia (CML) previously treated with at least one prior TKI and who experienced treatment failure, suboptimal response or treatment intolerance.

Merck chairman and chief executive Robert M. Davis said: "The acquisition of Terns builds on our growing presence in hematology with TERN-701, a potential best-in-class candidate for the treatment of certain patients with chronic myeloid leukemia.

"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."

Terns chief executive Amy Burroughs said: "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."

Shares of Terns Therapeutics were up 5.4% at 1245 GMT in pre-market trade at $52.71.