According to informed sources, Merck is in advanced negotiations to acquire pharmaceutical company Terns Pharmaceuticals. The deal could be announced as early as Wednesday, sources indicated. However, a final agreement has not yet been reached, and discussions may still fall through. Terns' stock price has risen approximately 50% from its low for the year on January 12, despite the company not releasing any significant announcements. Headquartered in Foster City, California, Terns has a market capitalization of around $4.4 billion. Including debt, its enterprise value is approximately $5.1 billion. Previous media reports suggested Merck is close to acquiring Terns for about $6 billion. Last year, Terns became a prominent topic at the American Society of Hematology annual meeting following the release of trial results. The study showed that over half of the patients treated with its experimental therapy—targeting a type of blood cancer that had responded poorly to prior treatments—experienced significant improvement within 24 weeks. The drug, known as TERN-701, has been tested in patients with chronic myeloid leukemia. In contrast, Merck, based in Rahway, New Jersey, has seen its stock price rise 11% this year, with a market capitalization of $288 billion.
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