Merck to buy Terns Pharmaceuticals for $6.7 billion to boost cancer pipeline
Pharma giant Merck is buying U.S. biotech firm Terns Pharmaceuticals for $6.7 billion, the company said Wednesday.
This is the third multibillion-dollar acquisition for Merck over the past year as the company looks to bulk up its portfolio ahead of its best-selling cancer drug Keytruda losing patent protection in 2028.
Merck will acquire Terns for $53 per share in cash for an equity value of about $6.7 billion. That marks a 6% premium to Tuesday’s closing price, according to CNBC’s calculations. The deal is expected to close in the second quarter.
Terns is developing a medicine for a type of leukemia that analysts see as a multibillion-dollar drug that could eventually rival Novartis‘ Scemblix.
Terns’ stock has skyrocketed in recent months with investor excitement building over the experimental drug, which showed promising results in an early trial late last year.
Terns shares rose 5.3% while Merck’s stock was largely flat in premarket trading on Wednesday. Shares of Terns were up as much as 15% in earlier trading after media reports said the companies were nearing a deal.
Terns stock has skyrocketed over the past year.
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