The news: Merck is acquiring cancer drug biotech Terns Pharma for $6.7 billion. Terns' pipeline includes a leukemia candidate with encouraging early results, as well as therapies for obesity and metabolic liver disease.

Why it matters: Merck is buying companies to build out its drug pipeline, especially in cancer, as it faces the loss of exclusivity for blockbuster drug Keytruda.

• Merck bought Cidara Therapeutics’ late-stage infectious disease and early cancer pipeline for $9.2 billion, and respiratory drugmaker Verona Pharma for $10 billion.
• Keytruda generated nearly $31.7 billion in 2025, accounting for 49% of Merck’s total revenue. The drug is expected to lose patent protection in 2028, opening the door to biosimilar competition.
• In February, Merck created a separate division for its cancer portfolio anchored by Keytruda.

Merck’s push also reflects a broader surge in oncology dealmaking and drug development.

• Recent billion-dollar cancer acquisitions include Sanofi’s $9.5 billion acquisition of Blueprint Medicines, Novartis’ $3 billion purchase of Synnovation, and Johnson & Johnson’s $3 billion deal for Halda Therapeutics.
• 16 out of the 46 novel drugs approved by the FDA last year were cancer treatments, including from AstraZeneca and Daiichi Sankyo, Eli Lilly, and Boehringer Ingelheim.

Oncology is the largest and fastest-growing drug category, totaling $240 billion worldwide in 2025 and projected to exceed $420 billion by 2032, according to Evaluate data shared with EMARKETER. While the cancer mortality rate is declining, diagnoses are rising, with 2.1 million new cases expected in the US in 2026, per the American Cancer Society.

Implications for pharma and biotech companies: Competition for the next wave of cancer drugs is intensifying as demand continues to grow. Rising incidence rates, especially among younger people, are increasing the need to improve survivability, safety, and earlier intervention.

That shift will also put greater focus on commercialization. As even more oncology treatments enter the market, pharma marketers will need to better differentiate new drugs to both patients and providers. Consumer messaging, effectiveness data, and physician engagement will be key in driving adoption.

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