Merck to Buy Terns for $6.7 Billion to Grow in Blood Cancers (3)

Merck & Co. agreed to buy Terns Pharmaceuticals Inc. for $6.7 billion, giving the multinational company access to a promising new leukemia treatment as it faces the patent expiration of its bestselling cancer drug.

Merck will pay $53 per share in cash for Terns, according to a statement, a 6% premium to its closing price on Tuesday — and a roughly 50% premium to the stock’s low in January before it surged on takeover speculation.

The boards of both companies have approved the transaction, which is expected to close in the second quarter. Merck will take a charge of ...