Merck Bets $6.7B on CML Drug as Keytruda Clock Ticks Down
By FieldPulse Editorial · March 25, 2026
Tags: Mergers & Acquisitions, Oncology, Pipeline
Merck is acquiring Terns Pharmaceuticals in an all-cash deal centered on TERN-701, a CML candidate, marking its third major acquisition in a year as it races to build a post-Keytruda portfolio.
Merck announced Wednesday it will acquire Terns Pharmaceuticals for $6.7 billion in cash, paying $53 per share — a premium of roughly 31% over the stock's recent trading price.
The deal, expected to close in the second quarter of 2026, is the company's third major acquisition in the past twelve months and its clearest signal yet that it is in full preparation mode for the 2028 expiration of Keytruda's U.S.
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At the center of the transaction is TERN-701, Terns' lead asset and a novel candidate for chronic myeloid leukemia.
CML is a niche but well-defined oncology market with an established standard of care, and Merck is betting TERN-701 can carve out meaningful share in a space where patient outcomes remain imperfect for a subset of the population.
Merck will record an approximately $5.8 billion charge in connection with the acquisition, a figure that reflects the largely clinical-stage nature of the asset.
That kind of upfront accounting hit is becoming a familiar line item for large-cap pharma companies doing tuck-in deals in this environment — painful on paper, but broadly accepted by investors who understand the alternative: watching blockbuster revenue streams evaporate without a credible replacement pipeline.
Keytruda generated tens of billions in annual revenue and has underpinned Merck's commercial dominance in oncology for nearly a decade.
Its loss of exclusivity is one of the most anticipated events in pharma, and Merck's acquisition strategy suggests the company is not counting on organic R&D alone to fill the gap.
For field reps currently carrying Merck products, the Terns deal is worth watching not just as corporate news but as a signal of where the company's promotional energy and resources are likely to flow in the years ahead.
CML is a specialist-driven market — hematologists and oncologists at academic medical centers and cancer programs — and a successful TERN-701 launch would require a targeted, high-science engagement model.
The deal also un.