Merck & Co Inc. (NYSE:MRK) on Wednesday agreed to acquire Terns Pharmaceuticals Inc. (NASDAQ:TERN), as the U.S. drugmaker accelerates efforts to offset looming revenue risks tied to its blockbuster cancer immunotherapy Keytruda.

The deal consideration is $53.00 per share in cash for an approximate equity value of $6.7 billion.

The Financial Times was the first to report the deal.

Pipeline Pressure Mounts Ahead Of Keytruda Expiry

The deal reflects Merck's broader strategy to replenish its pipeline ahead of Keytruda's expected patent expiry as early as 2028.

Keytruda, a cancer immunotherapy, generates about $30 billion annually, making it central to the company's growth trajectory.

Merck has been among the most aggressive acquirers in biotech, striking major deals in recent months.

In 2025, Merck acquired Verona Pharma plc for approximately $10 billion, gaining access to a respiratory disease drug.

In November 2025, Merck acquired influenza drug maker Cidara Therapeutics Inc. for $221.50 per share in cash, for a total transaction value of approximately $9.2 billion.

Terns Acquisition Signals Oncology Focus

The acquisition would center on Terns' early-stage treatment ...