Merck Acquires Terns Pharmaceuticals for $5.8 Billion

Merck has announced the acquisition of China-based biotechnology company Terns Pharmaceuticals in a deal valued at $5.8 billion. The acquisition is seen as part of Merck's strategy to expand its oncology portfolio. Terns Pharmaceuticals is particularly noted for its drug candidates targeting liver cancer treatment. Under the agreement, Merck will acquire all outstanding shares of Terns for cash. The transaction is expected to close in the first quarter of 2025. Merck's move aims to enhance its competitive position in the global pharmaceutical market. Terns Pharmaceuticals' key asset is TERN-501, a promising drug candidate for liver cancer treatment, currently in early-stage clinical trials. Merck plans to integrate this candidate into its own R&D pipeline to accelerate development. Following the acquisition announcement, Merck shares traded flat, while Terns Pharmaceuticals shares surged over 20%. Analysts suggest the deal could yield positive long-term returns for Merck. This is not investment advice.