Terns Pharmaceuticals is a clinical-stage oncology company focused on developing TERN-701, an oral, once-daily allosteric BCR-ABL1 inhibitor for chronic myeloid leukemia (CML). CML is a bone marrow cancer driven by the BCR-ABL1 fusion gene, and while existing TKIs have made it manageable, many patients develop resistance or face tolerability issues. TERN-701 targets the ABL1 myristoyl pocket — an allosteric binding site — rather than the active site used by most approved TKIs, which Terns argues delivers greater selectivity and a cleaner safety profile. The drug is in a Phase 1/2 trial called CARDINAL, targeting patients who have failed prior TKIs, including asciminib (Novartis's Scemblix, the only other approved allosteric TKI). Early data show a 75% major molecular response rate by 24 weeks in heavily pretreated patients, with responses seen even in prior asciminib failures. TERN-701 also carries no pancreatic toxicity signal and requires no food restrictions — both areas where asciminib has known drawbacks. Terns' primary commercial target is frontline CML, with a Phase 3 trial in second-line-plus CML planned for late 2026 or early 2027, followed by a frontline study. The company has no approved products and no revenue, funded by equity and debt. Terns also holds a regional license with Hansoh for greater China rights to TERN-701. In March 2026, Merck agreed to acquire Terns for $53 per share in cash, with the deal expected to close in Q2 2026.