Terns Pharmaceuticals to Be Acquired by Merck

Terns Pharmaceuticals ( (TERN) ) has shared an update.

On March 24, 2026, Terns Pharmaceuticals agreed to be acquired by Merck in an all-cash deal under which a Merck subsidiary will launch a tender offer to buy all outstanding Terns shares for $53 per share, valuing the equity at about $6.7 billion, or $5.7 billion net of cash. The transaction, announced publicly on March 25, 2026, carries a 31% premium to Terns’ 60-day and 42% to its 90-day VWAP, and includes a subsequent short-form merger that will make Terns a wholly owned Merck subsidiary, with customary antitrust and minimum tender conditions and detailed provisions for equity awards and pre-funded warrants.

The acquisition will be accounted for as an asset acquisition and is expected to close in the second quarter of 2026, resulting in an estimated $5.8 billion charge to Merck’s 2026 results, underscoring the strategic value placed on Terns’ lead CML candidate TERN-701, which has FDA orphan drug designation and early data showing promising efficacy and tolerability in heavily pretreated patients. The deal further expands Merck’s hematology and oncology pipeline, positioning the pharma major to strengthen its presence in chronic myeloid leukemia while Terns’ shareholders gain a substantial premium, though the transaction remains subject to regulatory clearance, majority tender by Terns stockholders, and potential termination fees tied to competing bids or antitrust-related failure to close.

The most recent analyst rating on (TERN) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Terns Pharmaceuticals stock, see the TERN Stock Forecast page.

Spark’s Take on TERN Stock

According to Spark, TipRanks’ AI Analyst, TERN is a Neutral.

Overall score is held back primarily by weak operating fundamentals (no revenue, sizable losses, and ongoing cash burn). Offsetting factors include a strong low-debt balance sheet and positive recent corporate developments (promising Phase 1 data and a financing that improves runway). Technicals are broadly neutral and valuation offers limited support due to negative earnings and no dividend.

To see Spark’s full report on TERN stock, click here.

More about Terns Pharmaceuticals

Terns Pharmaceuticals, Inc. is a clinical-stage oncology company focused on reimagining known cancer biology to deliver high-impact medicines, with a primary emphasis on hematologic malignancies. Its lead program, TERN-701, is a highly selective oral allosteric BCR::ABL1 inhibitor in Phase 1/2 development for chronic myeloid leukemia, targeting patients who have failed or are intolerant to prior tyrosine kinase inhibitor therapies.

Based in Foster City, Calif., Terns operates in the biopharmaceutical sector, concentrating on innovative targeted therapies that seek to improve efficacy, safety and convenience over existing treatment standards. The company’s market focus centers on chronic myeloid leukemia, where it aims to address unmet medical need and compete in a niche but strategically important segment of the oncology drug market.

Average Trading Volume: 2,207,008

Technical Sentiment Signal: Buy

Current Market Cap: $5.28B

For a thorough assessment of TERN stock, go to TipRanks’ Stock Analysis page.