March 25 (Reuters) – Merck said on Wednesday it would buy biotech Terns Pharma in a deal valued at up to $6.7 billion, as the drugmaker races to bolster its cancer pipeline ahead of the looming patent loss for its blockbuster therapy Keytruda.
Merck has offered $53 per share for Terns, representing a premium of 6% to the stock’s last close. Terns stock jumped 5.5% before the bell.
The deal gives Merck access to Terns’ experimental drug TERN-701, which is being tested to treat chronic myeloid leukemia, a cancer that starts in the bone marrow and causes the uncontrolled growth of leukemia cells.
The deal is expected to close in the second quarter of 2026.
Merck has been looking beyond its top-selling cancer drug, Keytruda, as it braces for the upcoming patent expiry.
Last month, the company unveiled plans to create a separate division for its cancer business.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Sriraj Kalluvila)
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