Merck clears major antitrust hurdle in $6.7B Terns takeover

Merck (NYSE:MRK) has moved a step closer to finalizing its multi-billion dollar bet on the next generation of blood cancer treatments, clearing a key federal antitrust review for its acquisition of Terns Pharmaceuticals.

The Rahway, New Jersey-based pharmaceutical giant announced Friday that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired at 11:59 p.m. ET on April 23, 2026.

The expiration removes a significant regulatory obstacle for the $6.7 billion all-cash deal, which was first announced on April 7.

Under the terms of the agreement, Merck is seeking to acquire all outstanding shares of Terns (NASDAQ:TERN) for $53 per share.

The offer represents an approximate equity value of $6.7 billion, or $5.7 billion net of acquired cash.

With the antitrust hurdle cleared, the consummation of the tender offer now primarily depends on Terns' stockholders tendering more than 50% of the company's outstanding shares.

The center-piece of the acquisition is TERN-701, an oral, allosteric BCR::ABL1 tyrosine kinase inhibitor currently in Phase 1/2 clinical trials.

The drug is being developed to treat chronic myeloid leukemia (CML), a market currently dominated by Novartis AG’s Scemblix.

Analysts at BMO Capital Markets and William Blair have suggested that TERN-701 could achieve peak annual sales exceeding $4 billion, positioning it as a vital asset for Merck as it prepares for the looming 2028 patent expiration of its top-selling cancer immunotherapy, Keytruda.