Merck remains optimistic on Terns leukemia drug despite new data

Merck said Thursday that it still sees a compelling outlook for Terns' leukemia drug even after updated study data suggested it may be less differentiated.

The updated data came from a trial of TERN-701, a therapy aimed at chronic myeloid leukemia, which previously showed a major molecular response in 74% of patients at 24 weeks.

Merck's due diligence revealed the newer results, leading to a reduced purchase price of $53 per share, valuing Terns at $6.7 billion, down from earlier expectations.

The acquisition is intended to help offset anticipated revenue loss from Keytruda's upcoming patent expiration.