06:33 AM EDT, 03/25/2026 (MT Newswires) -- (Updates with Terns ticker symbol in the first paragraph and latest stock move in the fifth paragraph.)

Merck ( MRK ) is close to a $6 billion all-cash deal to acquire Terns Pharma (TERN), a biotech focused on treatments for a rare blood and bone cancer, the Financial Times reported late Tuesday, citing people familiar with the matter.

The potential acquisition comes as Merck ( MRK ) ramps up dealmaking ahead of the expected patent expiry of its cancer drug Keytruda, which generates about $30 billion annually and could face competition as early as 2028, according to the report.

Sources said that talks between Merck ( MRK ) and Terns are at an advanced stage, with a deal potentially to be finalized within days, according to the Financial Times.

Merck ( MRK ) and Terns Pharma did not immediately respond to MT Newswires' request for comment.

Shares of Terns were up 13% in recent premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)