Merck Nears $6 Billion Acquisition of Terns to Prepare for Keytruda Patent Expiry

Merck & Co. (MSD) in the United States is actively pursuing acquisitions of biotech companies. This move is seen as an effort to strengthen its pipeline ahead of the expiration of the blockbuster cancer drug Keytruda's patent.

On March 24 (local time), the Financial Times (FT) reported that MSD is close to sealing a deal to acquire Terns Pharma, a company developing treatments for rare blood and bone marrow cancers, for approximately 6 billion dollars (about 9 trillion won). Negotiations between Merck and Terns are reportedly at an advanced stage, with sources familiar with the matter indicating that an agreement could be reached within days. The transaction is expected to be conducted entirely in cash.

Industry watchers interpret the acquisition of Terns as a bet on a first-line treatment for chronic myeloid leukemia (CML), a rare cancer caused by genetic mutations. It is a disease that affects both the blood and bone marrow. Terns is expected to begin late-stage clinical trials either by the end of this year or in early 2027.

According to FT, this acquisition is intended to prepare for the 2028 patent expiration of Keytruda, which currently generates about 30 billion dollars in annual sales. In fact, last year, MSD acquired Verona Pharma, a respiratory treatment company, for 10 billion dollars, and Cidara Therapeutics, a biotech firm specializing in flu prevention, for 9.2 billion dollars.

At the JP Morgan Healthcare Conference held in January, Rob Davis, CEO of MSD, stated that the company is considering additional mergers and acquisitions (M&A) to secure scientific innovation. He noted, "Deals up to 15 billion dollars are our sweet spot," but added that the company is also open to larger acquisitions.

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