Terns’ shares were trading 5.4% higher in premarket trading on Wednesday, while Merck shares rose less than 1%.
(March 25): Merck & Co agreed to buy Terns Pharmaceuticals Inc for US$6.7 billion, giving the multinational company access to a promising new leukaemia treatment as it faces the patent expiration of its best-selling cancer drug.
Merck will pay US$53 per share in cash for Terns, according to a statement, a 6% premium to its closing price on Tuesday. The boards of both companies have approved the transaction, which is expected to close in the second quarter. Merck will take a charge of about US$5.8 billion, or approximately US$2.35 per share, as a result.
