Pharmaceutical company Merck is nearing a roughly $6 billion all-cash deal to acquire biotech firm Terns Pharma, the Financial Times reported on Tuesday, citing people familiar with the matter.
The potential acquisition comes as U.S.-based Merck continues to reshape its oncology strategy. The company is in the process of establishing a dedicated cancer division centered around its blockbuster drug Keytruda, as it prepares for the drug’s patent expiration in 2028.
Negotiations between the two companies are said to be in advanced stages, with an agreement potentially expected within the next few days, the report said on Tuesday.
Merck and Terns Pharma did not immediately respond to Reuters’ request for comment.
Following the news, shares of Terns Pharma, which focuses on developing treatments for chronic myeloid leukemia, rose approximately 10% in after-hours trading.
Source: Reuters.com