MSD has entered into a definitive agreement to acquire US compatriot Terns Pharmaceuticals in an all-cash transaction valued at approximately USD 6.7 billion. The deal, priced at USD 53.00 per share, represents a 31% premium to Terns' 60-day volume-weighted average share price. The acquisition centres on Terns' lead asset, TERN-701, a novel oral allosteric BCR-ABL1 tyrosine kinase inhibitor (TKI) in I/II stage development for Philadelphia chromosome-positive chronic myeloid leukaemia (CML) patients who have failed prior TKI therapy. TERN-701 has demonstrated promising efficacy and a favourable safety profile in early trials.

The transaction aligns with MSD's strategy to expand its haematology and broader oncology portfolio. In 2020, Terns licensed the Greater China rights for TERN-701 to Hansoh Pharmaceutical for up to USD 68 million in milestone payments plus royalties, a deal that remains in effect. MSD's acquisition provides the financial and commercial resources to accelerate the global development of TERN-701, which holds the potential to become a best-in-class therapy for a subset of CML patients.

According to PharmCube's NextBiopharm® database, this is on of the largest single-asset single-molecule M&A deals, despite involving an early-stage candidate. Click here to request a free trial for NextBiopharm®.