Terns Director Quigley Cancels All Stock Options, Takes Cash Payout in Merck $53‑Per‑Share Deal

TL;DR: Jill M. Quigley, a director of Terns Pharmaceuticals (TERN), surrendered all her stock options on May 5, receiving cash under Merck’s $53‑per‑share merger, leaving her with no remaining derivative holdings.

Context On March 24, 2026, Terns entered into an Agreement and Plan of Merger with Merck Sharp & Dohme LLC. Under the deal, Merck will pay $53.00 for each Terns share in a cash tender offer. Any outstanding Terns stock option with an exercise price below $53 is cancelled and converted into a cash right equal to the difference between $53 and the option’s exercise price, minus applicable withholding taxes.

Key Facts On May 5, 2026, Quigley reported the disposition of seven Terns option grants covering a total of 147,309 shares. The exercised prices of those grants ranged from $4.10 to $34.60 per share. Using the merger consideration, each option’s cash payout equals ($53 − exercise price) per share, less taxes. After these transactions, Quigley holds zero Terns stock options.

TERN shares traded at $52.88 on May 5, up 0.2% from the prior close, giving the company a market capitalization of roughly $4.2 billion based on approximately 79 million shares outstanding. The stock price has remained flat since the merger announcement, trading within a narrow band around the $53 offer price.

What It Means Quigley’s surrender aligns her personal incentives with the merger’s cash outcome, eliminating any future upside from unexercised options. For investors, the transaction signals that insiders are converting potential equity into immediate cash, reflecting confidence in the deal’s completion. No change in voting power or board composition results from the move.

Watch for the tender offer’s expiration date and any subsequent SEC filings that may reveal additional insider activity or shareholder approval steps.