MRK · 10-Q · 2026Q2 · Full report
Acquisition / Partnership / Divestiture
Merck & Co., Inc. · 2026-08-07 · Importance 71 · Surprise 60 · Contradicted
Merck acquired TARGAN in July 2026 for approximately $650 million to expand Merck Animal Health’s poultry portfolio with WingScan automated gender identification and precision ocular spray technology. Merck acquired Terns Pharmaceuticals in May 2026 for $6.8 billion, including $606 million to settle share-based awards, and recorded a $5.7 billion acquired in-process research and development charge, or $2.31 per share. Merck acquired Cidara Therapeutics in January 2026 for $9.2 billion, including $570 million to settle share-based awards, and recorded a $9.0 billion acquired in-process research and development charge, or $3.62 per share. The Cidara transaction added MK-1406, a long-acting antiviral in a Phase 3 influenza-prevention trial, while the Terns transaction added MK-4208, an oral BCR::ABL1 inhibitor in a Phase 1/2 leukemia trial.
Key facts
- In May 2026, Merck acquired Terns Pharmaceuticals, Inc. (Terns) for $6.8 billion, including $606 million of payments to settle share-based equity awards of which $433 million related to unvested equity awards. source
- In January 2026, Merck acquired Cidara Therapeutics, Inc. for $9.2 billion, including $570 million of payments to settle share-based equity awards of which $406 million related to unvested equity awards. source
- In July 2026, Merck acquired TARGAN for approximately $650 million. source
- Merck expects to account for the TARGAN transaction as a business combination and there are no future contingent payments associated with the acquisition. source
- Merck recorded net assets of $332 million from the Cidara acquisition and under a previous license agreement assumed by Merck, J&J Innovative Medicine is eligible to receive regulatory and sales-based milestones related to MK-1406. source
- There are no future contingent payments associated with the Terns acquisition. source
- Ohtuvayre was obtained as part of Merck’s October 2025 acquisition of Verona Pharma; sales in Q2 2026 reflect a benefit from the timing of specialty pharmacy purchases in the U.S. expected to unwind in Q3 2026. source
- Merck recorded an unrealized gain of $71 million to Other (income) expense, net in the second quarter and first six months of 2026 related to an existing investment that Merck held in TARGAN. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +7.1% | In January 2026, Merck acquired Cidara Therapeutics, Inc. for $9.2 billion, including $570 million of payments to settle share-based… |
| assets | positive | realized | +5.2% | In May 2026, Merck acquired Terns Pharmaceuticals, Inc. (Terns) for $6.8 billion, including $606 million of payments to settle share-based… |
| cash | negative | realized | -5.2% | In May 2026, Merck acquired Terns Pharmaceuticals, Inc. (Terns) for $6.8 billion, including $606 million of payments to settle share-based… |
| assets | positive | realized | +0.5% | In July 2026, Merck acquired TARGAN for approximately $650 million. |