Merck to buy Terns Pharmaceuticals for $53 a share, about $6.7 billion, for CML drug TERN-701

Merck agreed to acquire Terns Pharmaceuticals for $53.00 per share in cash, valuing the company at about $6.7 billion, or about $5.7 billion net of acquired cash. The offer was about 31% above Terns' 60-day volume-weighted average price, but only about 6% above the prior day's close. The target, TERN-701, is an oral BCR::ABL1 inhibitor for chronic myeloid leukemia, and it adds a hematology asset as Keytruda's US patent protection runs out in 2028.

• $53.00 per share in cash; about $6.7B equity value
• About $5.7B net of acquired cash
• Premium of about 31% to the 60-day VWAP and about 6% to the prior close
• Tender offer requires a majority of Terns shares and HSR clearance