RCS - Intnl. Biotechnology - IBT portfolio company Terns acquired by Merck

International Biotechnology TrustAnnouncement

Wed 14:45

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RNS Number : 1342Y  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
(https://ir.ternspharma.com/news-releases/news-release-details/merck-acquire-terns-pharmaceuticals-inc-expanding-its-hematology)
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
(https://www.londonstockexchange.com/news-article/IBT/net-asset-value-s/17519823)
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.

To sign up for IBT updates by email, please click here
(https://www.schroders.com/en-gb/uk/individual/never-miss-an-update/) .

ENDS

 

Enquiries:

 

 Schroder Investment Management Limited

 Kirsty Preston (PR)                                                  020 7658 6000

 Natalia de Sousa (Company Secretary)                                 020 7658 6000

 Kaso Legg Communications (Financial PR)                              IBT@kl-communications.com (mailto:IBT@kl-communications.com)

 Charles Gorman

 Henry Taylor

 Effie Aye Maung Hider

 

 

 

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