Terns Pharma Shares Surge on Reported $6B Acquisition Talks with Merck

Merck & Co. is reportedly close to an approximately $6 billion all-cash deal to acquire U.S. biotech firm Terns Pharmaceuticals, according to the Financial Times.

The talks are at an advanced stage and could be finalized in the coming days, the FT reported, citing unidentified sources. Terns had a $5.4 billion market capitalization as of Tuesday's close.

Shares of Terns Pharma, which focuses on developing treatments for chronic myeloid leukemia, rose approximately 14% in premarket trading on Wednesday following the news.

The acquisition would help Merck strengthen its drug pipeline ahead of the 2028 patent expiration for its blockbuster cancer drug, Keytruda. Merck CEO Rob Davis has been spearheading a strategy to diversify the company's portfolio.

Neither Merck nor Terns immediately responded to requests for comment from the FT.