In March, Merck & Co Inc. (NYSE:MRK) 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.

Updated Trial Data Influences Merck Negotiations

During deal negotiations, Merck decided to lower its offer price after seeing updated clinical data for Terns' lead drug TERN-701, according to SEC filings on Tuesday.

As per the documents, Merck submitted a non-binding proposal of $61.00 per share in February.

Later, Merck received updated clinical data from Terns' ongoing CARDINAL trial of TERN-701 from Terns management, which was previously requested by Merck.

That same week, Merck received from Terns clinical data generated under Terns' exclusive option and license agreement with Hansoh (Shanghai) ...