IBT portfolio company Terns acquired by Merck

Intl. Biotechnology Trust PLC

25 March 2026

 

INTERNATIONAL BIOTECHNOLOGY TRUST PLC ("IBT")

Merck agrees to acquire IBT portfolio company Terns Pharmaceuticals

IBT notes the announcement on Wednesday 25 March 2026 that Terns Pharmaceuticals (Terns) has entered into an agreement to be acquired by Merck for up to USD 6.7 billion.

Terns is a clinical-stage oncology company, with its lead candidate, TERN-701, currently in Phase 1/2 trials for certain patients with chronic ‌myeloid ⁠leukaemia (CML). In March 2024, the U.S. Food and Drug Administration (FDA) granted Orphan Drug Designation for TERN-701 for the treatment of CML.

Under the terms of the agreement, Terns shareholders will receive USD 53 per share in cash at closing, representing a premium of 6% to the closing share price on 24 March and approximately 31% to the 60-day volume-weighted average stock price on 24 March.

As at close of business on 24 March, Terns represented 3.64% of IBT's Net Asset Value, as included in IBT's daily NAV update today. IBT initially invested in Terns at a price of approximately USD 3 per share in March 2025, with the holding delivering a return multiple of approximately 17.7x since IBT's initial investment.

Commenting on the news, Ailsa Craig and Marek Poszepczynski, portfolio managers of IBT, said:

"The wave of M&A activity in the biotechnology sector shows no sign of slowing, and this is the second M&A transaction this month for our portfolio companies following the acquisition of Day One Biopharmaceuticals by Servier earlier in March.

Our process of selecting holdings for IBT's portfolio, which carefully considers the characteristics that would make companies attractive to potential acquirers, is continuing to deliver results for our shareholders, including in the highly crowded oncology space where picking winners can be particularly challenging.

The fundamental drivers of M&A activity in biotechnology remain firmly in place, despite geopolitical events creating uncertainty. Merck and other large pharmaceutical companies are facing a significant patent cliff in the coming years, and the need for these companies to replenish clinical pipelines is likely to drive further dealflow activity in the biotechnology sector in the coming months."

The updated valuation of IBT's holding in Terns will be included in IBT's NAV as at close of business on Wednesday 25 March, to be reported in the usual way on Thursday 26 March.

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ENDS

Enquiries: 

Schroder Investment Management Limited  Kirsty Preston (PR)  Natalia de Sousa (Company Secretary)	020 7658 6000  020 7658 6000
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