MRK · 8-K · 20260804PR090045
Acquisition / Partnership / Divestiture
Merck & Co., Inc. · 2026-08-04 · Importance 71 · Surprise 60 · No source text
Merck completed the acquisition of Terns Pharmaceuticals for $6.8 billion during the second quarter of 2026. The transaction added MK-4208, an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor for certain adults with Philadelphia chromosome-positive chronic myeloid leukemia. The acquisition generated a $5.7 billion R&D charge and reduced second-quarter GAAP and non-GAAP EPS by $2.31 per share. Merck’s updated 2026 outlook includes $5.7 billion for Terns, $3.62 per share for Terns and Cidara combined, and approximately $0.12 per share of financing and MK-4208 advancement costs.
Key facts
- Completed acquisition of Terns for $6.8 billion and added MK-4208, an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor recently granted BTD by FDA source
- The charges related to Terns ($5.7 billion, $2.31 per share) were not previously included in the outlook source
- The company completed acquisition of TARGAN for the Animal Health business (noted as completed) to broaden poultry portfolio source
- GAAP and non-GAAP EPS in Q2 2026 include a charge of $2.31 per share for the acquisition of Terns source
- OHTUVAYRE sales were $204 million in Q2 2026; product obtained as part of October 2025 acquisition of Verona Pharma plc source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | — | Completed acquisition of Terns for $6.8 billion and added MK-4208, an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor… |
| assets | positive | realized | — | The company completed acquisition of TARGAN for the Animal Health business (noted as completed) to broaden poultry portfolio |