MSD concludes Terns acquisition to expand CML pipeline

Merck & Co (MSD) has completed its acquisition of Terns Pharmaceuticals, expanding its pipeline of treatments for chronic myeloid leukaemia (CML).

Following a palmy tender connection and consequent merger, the companies announced the completion of the transaction, making Terns a wholly owned subsidiary of MSD.

The US Food and Drug Administration (FDA) precocious granted breakthrough therapy designation to TERN-701.

The designation covers adults with Philadelphia chromosome-positive CML successful the chronic signifier without the T315I mutation, who were antecedently treated with 2 oregon much tyrosine kinase inhibitors.

It was supported by ongoing information from the Phase I/II CARDINAL trial.

MSD completed the currency tender connection done a subsidiary, buying each outstanding Terns communal banal astatine $53 per share, without involvement and taxable to applicable taxation withholding.

The tender expired connected 4 May 2026. A full of 100.1 cardinal shares, oregon 86.36% of outstanding Terns stock, were validly tendered and not withdrawn.

MSD accepted each specified shares successful enactment with the offer’s presumption and volition promptly wage for them accordingly.

Following the tender completion, MSD volition acquisition each outstanding Terns shares astatine the clip of the merger.

With this, Terns is present a wholly owned subsidiary, and its shares volition nary longer beryllium traded connected the Nasdaq Global Select Market.

The transaction volition beryllium treated arsenic an plus acquisition, resulting successful a complaint to probe and improvement of $5.8bn ($2.35 per share) wrong the 2nd 4th and afloat twelvemonth 2026 reported results.

Generally accepted accounting principles (GAAP) and non-GAAP net per stock are expected to beryllium negatively impacted by $0.12 per stock successful 2026, reflecting advancement and financing costs for TERN-701.

TERN-701 is simply a caller oral investigational allosteric breakpoint clump region::abelson murine leukaemia viral oncogene homolog 1 (BCR::ABL1) tyrosine kinase inhibitor.

It binds to the ABL myristoyl pocket, with the imaginable to amended therapies for CML.

Merck president and CEO Robert Davis said: “The Terns acquisition reflects Merck’s continued absorption connected science-driven, value-enhancing concern improvement aimed astatine bringing meaningful innovation to patients.

“We judge TERN-701 has the imaginable to go a differentiated attraction enactment for definite patients with chronic myeloid leukaemia, and we look guardant to moving with the Terns squad to beforehand its objective development.”

Last month, MSD and Google Cloud formed a multi-year partnership, investing up to $1bn, to beforehand agentic AI endeavor transformation.