Merck & Co., Inc. (MRK.US) is close to reaching an agreement to acquire Terns Pharmaceuticals (TERN.US) to deepen their layout in the treatment of blood cancer.

According to sources familiar with the matter, Merck & Co., Inc. (MRK.US) is in advanced negotiations to acquire pharmaceutical company Terns Pharmaceuticals (TERN.US). Sources indicate that the deal could be announced as early as Wednesday. However, the sources also mention that the two parties have not yet reached a final agreement, and the negotiations could still fall through. Terns' stock price has increased by about 50% from its yearly low on January 12, despite the company not making any major announcements. Terns is headquartered in Hangzhou First Applied Material, California, with a market value of about $4.4 billion. Including debt, its market value is approximately $5.1 billion. Earlier reports from the media suggested that Merck & Co., Inc. may acquire Terns for around $6 billion. Last year, Terns became a hot topic at the American Society of Hematology annual meeting after the results of a trial were announced. The trial showed that over half of the patients receiving their experimental therapy for a type of blood cancer that did not respond well to previous treatments saw significant improvements in their condition within 24 weeks. The drug, called TERN-701, has been tested in patients with chronic myeloid leukemia. In contrast, Merck & Co., Inc., based in Kenilworth, New Jersey, has seen an 11% increase in its stock price this year, with a market value of $288 billion.