Merck close to $6B acquisition of Terns Pharma to boost cancer portfolio: FT (MRK:NYSE)

Merck is close to an approximately $6 billion all-cash deal to acquire US biotech Terns Pharmaceuticals to bolster its drug pipeline ahead of Keytruda’s patent expiry. The acquisition is a strategic move to mitigate upcoming patent-driven revenue risk for Keytruda and should be positive for Merck’s pipeline outlook, likely moving Merck and biotech peers upon completion.

Analysis

Merck is close to an approximately $6 billion all-cash deal to acquire US biotech Terns Pharmaceuticals to bolster its drug pipeline ahead of Keytruda’s patent expiry. The acquisition is a strategic move to mitigate upcoming patent-driven revenue risk for Keytruda and should be positive for Merck’s pipeline outlook, likely moving Merck and biotech peers upon completion.