Merck's Q2 Loss Due to Terns Acquisition Charges

Merck, a pharmaceutical giant, reported a second-quarter loss due to various charges. The company's GAAP and non-GAAP losses were largely attributed to a $2.31 per share charge for the acquisition of Terns Pharmaceuticals and an upfront payment related to a license agreement with Jiangsu Hengrui Pharmaceutical Co., Ltd.

Despite the loss, Merck's stock remained nearly unchanged in mid-morning trading. The company beat the Zacks Consensus estimate by 50%, according to its second-quarter results.

The acquisition of Terns Pharmaceuticals was a major contributor to Merck's losses. The deal, worth $6.8 billion, included MK-4208, an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor granted Breakthrough Therapy designation by the FDA for the treatment of certain adults with Philadelphia chromosome-positive chronic myeloid leukemia.

Merck's full-year 2026 financial outlook was raised and narrowed, anticipating sales between $66.3 billion and $67.3 billion, including a positive impact from foreign exchange of approximately 1% at mid-July 2026 exchange rates.