Big Pharma's M&A Spree and the March IPO Drought: An Analysis
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This article explores whether Big Pharma's aggressive M&A activities contributed to the decline in IPOs in March, providing insights for investors and analysts.
Big Pharma's M&A Spree and the March IPO Drought: An Analysis should use dated 2026 deals, not a recycled March 2023 rumor. Merck's March 25, 2026 agreement to buy Terns for about $6.7 billion is a concrete example of cash takeouts competing with public-listing paths.
Contents8 sections
Key Takeaways
- Merck announced on March 25, 2026 that it would acquire Terns for $53.00 per share, about $6.7 billion equity value ($5.7 billion net of cash).
- The deal premium was about 31% to the 60-day and 42% to the 90-day VWAP on March 24, 2026.
- Merck later completed the acquisition after a tender offer ending May 4, 2026, with roughly 86.36% of Terns shares tendered.
- June 2026's AbbVie-Apogee $10.9 billion equity-value agreement shows the M&A bid for clinical biotech assets continued after March.
What March 2026 deal best illustrates the M&A spree?
On March 25, 2026, Merck and Terns announced a definitive agreement for Merck to acquire Terns for $53.00 per share in cash. Merck's acquisition announcement values the equity at about $6.7 billion.
The same release pegs net consideration near $5.7 billion after acquired cash and cites premiums of about 31% and 42% versus the 60-day and 90-day volume-weighted average prices on March 24, 2026.
A matching Business Wire distribution carries the same economic terms for syndication and archival citation.
Did the Terns process actually close?
Yes. Merck's completion release states the cash tender offer expired one minute after 11:59 p.m. Eastern Time on May 4, 2026, with 100,091,794 shares validly tendered, about 86.36% of Terns' outstanding common stock.
Merck then merged Terns into a wholly owned subsidiary and removed Terns from Nasdaq. The company said the deal would be accounted for as an asset acquisition with roughly a $5.8 billion R&D charge, or about $2.35 per share.
That close converts a March announcement into removed public-float supply, which is the mechanical channel linking large M&A to thinner IPO calendars.
How should investors read March IPO drought claims?
A drought claim needs IPO count data, not only one acquisition headline. What can be said from primary deal disclosures is that March 2026 featured a multi-billion-dollar cash takeout of a clinical oncology name, which absorbs banker and crossover attention that might otherwise support listings.
Delete older secondary narratives that place an undefined "Fierce Biotech" March 2023 spree at the center of this article. Use 2026 filings and company releases instead.
For a later mid-year comparator, AbbVie's June 22, 2026 PR Newswire release values Apogee at about $10.9 billion equity ($135.11 per share).
What should BD teams do in an M&A-heavy window?
Reprice sell-side processes against recent cash premiums, not last year's IPO comps. Stress-test whether a dual-track IPO is still credible if strategic buyers can clear $5–11 billion equity checks for clinical assets.
Map therapeutic adjacency: Terns brought TERN-701 for chronic myeloid leukemia into Merck's hematology plans, while Apogee deepens immunology and respiratory optionality for AbbVie.
Cross-link pipeline and regulatory context via NovaPharma's 2026 M&A boom analysis and biotech-asset race coverage.
Related NovaPharma coverage
- Pharma M&A set to boom in 2026: market analysis
- Big Pharma race for biotech assets amid patent cliff
- May 2026 FDA drug approvals regulatory roundup
Frequently Asked Questions
What major March 2026 pharma acquisition was announced?
On March 25, 2026, Merck announced a definitive agreement to acquire Terns Pharmaceuticals for $53.00 per share in cash, an approximate equity value of $6.7 billion.
When did Merck complete the Terns acquisition?
Merck announced completion of the Terns acquisition after a tender offer that expired one minute after 11:59 p.m. Eastern Time on May 4, 2026, with about 86.36% of shares tendered.
How can M&A pressure IPO windows?
Large cash takeouts can divert crossover capital and management bandwidth toward sale processes, so IPO candidates often wait for clearer public-market windows even when private valuations stay firm.
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