Key insights
- Merck's acquisition of Terns Pharmaceuticals cleared a key antitrust hurdle, moving the deal closer to completion. While positive for both companies, the broader market impact is limited. Merck's recent AI collaboration with Google Cloud and FDA approval for Idvynso are more significant long-term drivers, though offset somewhat by a failed Phase 3 trial.
RAHWAY, N.J. - Merck & Co. (NYSE:MRK) announced Thursday that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired for its pending acquisition of Terns Pharmaceuticals, Inc. (NASDAQ:TERN), according to a press release statement.
The HSR waiting period ended at 11:59 p.m. Eastern Time on Wednesday. The expiration satisfies one condition necessary for completing the tender offer, which Merck commenced through a subsidiary on April 7, 2026.
Under the tender offer, Merck is offering to purchase all outstanding shares of Terns common stock for $53.00 per share in cash, without interest and less any applicable tax withholding.
The completion of the tender offer remains subject to other conditions outlined in the tender offer statement on Schedule TO filed with the U.S. Securities and Exchange Commission on April 7, 2026. These conditions include the tender of shares representing more than 50% of Terns’ total outstanding shares.
Merck, known as MSD outside the United States and Canada, is a research-intensive biopharmaceutical company based in Rahway, New Jersey. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value, with shares up nearly 49% over the past year. Terns Pharmaceuticals is headquartered in Foster City, California.
In other recent news, Merck & Co. announced a significant collaboration with Google Cloud, valued at up to $1 billion, to integrate artificial intelligence technology across its operations. This partnership aims to enhance Merck’s research, development, and corporate functions by utilizing Google’s Gemini Enterprise AI platform. Additionally, the U.S. Food and Drug Administration has approved Merck’s Idvynso for the treatment of HIV-1, marking a notable development in the company’s pharmaceutical offerings. However, Merck faced a setback as its Phase 3 LITESPARK-012 trial for advanced renal cell carcinoma, conducted with Eisai, did not meet its primary endpoints.
In other developments, UBS reiterated a Buy rating on Merck, citing the strength of its drug pipeline and strategic deals aimed at portfolio expansion. Meanwhile, Inhibrx Biosciences has reportedly attracted takeover interest from major pharmaceutical companies, including Merck, for its experimental cancer treatments. The potential joint spin-off of Inhibrx’s drugs could be valued at over $9 billion if clinical trials are successful. These recent developments highlight the dynamic nature of Merck’s business activities and its ongoing efforts in drug development and strategic partnerships.
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