Terns Tops Trading Volume as Merck Near Finalizes $6.7 Billion Takeover Deal

Market Snapshot

Terns (TERN) closed down 0.08% on March 30, 2026, with a trading volume of $0.41 billion, ranking first in terms of volume on the day. Despite the modest decline in price, the stock attracted significant investor attention, as evidenced by its high-volume performance.

Key Drivers

Terns Pharmaceuticals has entered into a definitive merger agreement with Merck (MRK) under which Merck will acquire the company for $53 per share. The deal, valued at $6.7 billion, is expected to close in the second quarter of 2026. Merck’s acquisition is part of a broader strategic initiative to strengthen its oncology portfolio as it prepares for the expiration of Keytruda’s patent exclusivity. Terns’ lead drug candidate, TERN-701, is a key asset in this transaction and is currently in Phase I/II trials for patients with BCR-ABL1–positive chronic myeloid leukemia (CML). The drug has demonstrated strong efficacy in early trials, including an impressive 75% major molecular response (MMR) and 36% deep molecular response (DMR) in the CARDINAL trial.

TERN-701’s fast-track designation from the FDA in December 2025 further underscores the therapeutic potential of the drug and Merck’s confidence in its development path. The company has already outlined plans for Phase III trials in both first-line and second-line CML treatment settings. TERN-701’s high likelihood of approval, currently estimated at 20% by GlobalData, highlights its early-stage promise and aligns with Merck’s long-term ambitions to expand its presence in hematological malignancies.

In addition to its clinical progress, Terns has a strong financial position. The company reported a net loss of $96.2 million for 2025, but it maintains cash reserves in excess of $1 billion, which is expected to fund operations through 2031. This robust liquidity provides a clear runway for continued development and reduces near-term financial pressures on the company. The merger with Merck will likely bring additional capital and infrastructure, accelerating the development and commercialization of TERN-701 and other pipeline assets.

The competitive landscape for CML treatment is intensifying, particularly with Novartis’s Scemblix (asciminib), which has established itself in all lines of CML treatment. However, TERN-701’s superior MMR and DMR rates observed in the CARDINAL trial, as well as its demonstrated ability to achieve responses in patients who have previously failed on Scemblix, suggest a compelling value proposition. Merck’s acquisition of Terns positions it to potentially challenge Novartis in this high-stakes oncology segment.

While the stock price edged slightly lower on the day, the news surrounding the merger and the clinical progress of TERN-701 represents a significant catalyst for the company. Investors appear to be factoring in the long-term upside from the acquisition and the transformative potential of TERN-701, even as short-term trading activity reflects cautious sentiment. The deal is expected to create substantial value for Terns shareholders, particularly as it moves toward the Q2 2026 closing.