Terns Director Quigley Surrenders All Stock Options as Merck Merger Pays $53 per Share

TL;DR Terns Pharmaceuticals director Jill M. Quigley surrendered all her stock option grants following Merck’s $53‑per‑share tender offer, leaving her with zero option exposure.

The merger agreement, signed March 24, 2026, calls for Merck to acquire Terns through a cash tender offer at $53.00 for each share. Under the deal, any outstanding option with an exercise price below $53 is cancelled and its holder receives cash equal to the difference between $53 and the exercise price, after applicable withholding taxes. This mechanism converts in‑the‑money options into immediate payouts rather than future equity.

On May 5, 2026, Quigley filed seven dispositions covering a total of 147,309 options. The largest block was 45,000 shares with a $4.10 exercise price; other grants had exercise prices of $10.72, $12.05, $34.60 and additional levels. After these transactions, her holdings show zero remaining stock options, as reflected in the filing.

Market reaction has been muted but notable. Terns (TERN) closed at $52.70 on May 4, up 0.6% from the prior session, giving the company a market capitalization of roughly $1.05 billion. Merck (MRK) traded at $115.10, down 0.2%, with a market cap near $282 billion. The TERN price sits just below the $53 offer, indicating investors expect the tender to succeed.

The surrender eliminates Quigley’s potential upside from any post‑merger share price appreciation, but locks in the guaranteed cash payout dictated by the merger terms. For other option holders, the same cash‑out formula applies, providing liquidity ahead of the deal’s closing.

Watch for the final tender offer expiration date and any competing bids that could alter the effective consideration per share.