Merck agrees nearly $6 billion deal to acquire Terns Pharmaceuticals

Merck agreed to acquire Terns Pharmaceuticals for nearly $6 billion, paying $53 a share (about $5.7 billion including Terns' cash) to gain an experimental pill for chronic myeloid leukemia; Keytruda, Merck's top drug, is set to lose main patent protection in 2028.

Merck has agreed to acquire Terns Pharmaceuticals in a cash transaction worth nearly $6 billion to add an experimental leukemia pill to its portfolio. Terns is a biotech based in Foster City, California, that has been developing oral medicines for cancer as well as obesity and metabolic-liver diseases. The acquisition comes as Merck prepares for the main patent for its top-selling immunotherapy, Keytruda, to expire in 2028. Key details: - Merck would pay $53 a share for Terns, and the deal is valued at about $5.7 billion when accounting for Terns' cash on hand. - Terns' lead program is an oral medicine for chronic myeloid leukemia, and the company reported encouraging study results last year. - The article mentions Wall Street analysts have projected substantial future sales for the drug, with one firm estimating up to $2.3 billion in peak adjusted annual revenues. - Merck is a large pharmaceutical company whose Keytruda generated around $31.7 billion in sales last year, according to the article. Summary: The acquisition adds an experimental leukemia treatment to Merck's late-stage pipeline and is described in the article as part of Merck's broader deal-making strategy ahead of Keytruda's patent expiry. Undetermined at this time.