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Merck to Acquire Terns Pharma for $6 Billion

3/25/2026

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Summary

Story summary

Merck is nearing a $6 billion all-cash acquisition of Terns Pharma.
The deal values Terns at a premium to its approximately $5.3 billion market capitalization.
The acquisition aims to strengthen Merck's oncology pipeline ahead of Keytruda's 2028 patent expiration, after Keytruda generated over $30 billion in sales in 2025.
Merck has previously acquired Verona Pharma and Cidara Therapeutics to mitigate potential revenue losses.

History

Historical Context

Merck's acquisition of Acceleron Pharma for $11.5 billion in 2020 marked a significant expansion of its oncology portfolio, following the success of Keytruda, which generated $30 billion in sales by 2025. This strategy reflects a broader trend in the pharmaceutical industry towards consolidation, as companies seek to enhance their drug pipelines ahead of patent expirations, such as Keytruda's in 2028.

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Story summary

Merck is nearing a $6 billion all-cash acquisition of Terns Pharma.
The deal values Terns at a premium to its approximately $5.3 billion market capitalization.
The acquisition aims to strengthen Merck's oncology pipeline ahead of Keytruda's 2028 patent expiration, after Keytruda generated over $30 billion in sales in 2025.
Merck has previously acquired Verona Pharma and Cidara Therapeutics to mitigate potential revenue losses.

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