Terns Pharmaceuticals
TERNNASDAQHigh RiskSmall molecule drug development
Reviewed by Blane Jackson, DDS, MBA. Educational analysis only. Read the editorial policy and disclosures.
Market cap
Small cap
Cash position
$200M as of Q1 2025
~24 months runway (derived)
Revenue status
pre revenue
Pipeline assets
2 programs
What does Terns Pharmaceuticals do?
Terns Pharmaceuticals is a small biotech company working on treatments for cancer, specifically a type of blood cancer called chronic myeloid leukemia (CML). Their main drug, TERN-701, is designed to block a protein that causes cancer cells to grow. Unlike older drugs, it attaches to a different part of the protein, which might help patients who have become resistant to current treatments. They also have a drug for an eye condition related to thyroid disease. For investors, Terns is a high-risk, high-reward bet: if their lead drug works well in clinical trials, it could become a major player in a multi-billion dollar market. But they face tough competition from an already-approved drug called asciminib, and they have no products on the market yet. The company has enough money to operate for about two years, but they'll need positive trial results to keep going. Keep an eye on their upcoming data releases, which could cause big stock price swings.
What to watch
Monitor for updated TERN-701 phase 1 data at major conferences like ASH or ASCO.
Track enrollment and dosing progress in the phase 1 trial via clinicaltrials.gov.
Watch for any announcements of partnerships or licensing deals for TERN-701.
Follow quarterly earnings calls for updates on cash runway and pipeline strategy.
Pipeline
| Drug | Indication | Phase | Expected data | |
|---|---|---|---|---|
| TERN-701 | Chronic Myeloid Leukemia (CML) | Phase 1 | Q4 2025 | ▼ |
| TERN-501 | Thyroid Eye Disease (TED) | Phase 2 | H2 2026 | ▼ |
Investment thesis
Bull case
Terns Pharmaceuticals is developing TERN-701, a potentially best-in-class allosteric inhibitor for CML, a well-established market with clear regulatory pathways. Early data suggest it may be more potent and safer than existing therapies, including asciminib. With a strong cash position and a second asset in TED, Terns offers multiple shots on goal. If TERN-701 demonstrates superiority in ongoing trials, it could capture significant market share and lead to a lucrative partnership or acquisition. The company's experienced management team and focus on precision medicine align with current oncology trends.
Bear case
Terns faces intense competition from Novartis's asciminib, which is already approved and has a head start. TERN-701 is still in early stages, and clinical data may not replicate preclinical promise. The CML market is relatively mature, and payers may be reluctant to switch patients without clear advantages. Additionally, Terns has no approved products and relies heavily on TERN-701's success; any clinical hold or safety issue could devastate the stock. The TED program is also competitive, with Amgen's Tepezza dominating. Terns may need to raise capital, diluting shareholders.
Key upcoming catalysts
Phase 1 data for TERN-701 in CML
Q4 2025
Unverified — this date has not been checked against a primary source.
Phase 2 interim data for TERN-501 in TED
H2 2026
Unverified — this date has not been checked against a primary source.
Presentation at ASH 2025
December 2025
Unverified — this date has not been checked against a primary source.
Risk factors
Clinical trial failure or delay for TERN-701
Competitive pressure from asciminib and other CML therapies
Dependence on single lead asset for near-term value
Potential safety issues in early trials
Need for additional financing if trials expand
Comparable companies
Financial snapshot
These figures are drafted by our AI pipeline, not read from SEC filings. Confirm anything you would act on against the company's latest 10-Q or 10-K.
Cash
$200M as of Q1 2025
Q1 2025 — 6 quarters ago
Quarterly burn
$25M
Cash runway
~24 months
$200M ÷ $25M per quarter
Revenue
pre revenue
Institutional ownership
80%
Source: company profile text. These figures come from the company profile text, not from a filing we have parsed. Check them against the latest 10-Q before relying on them.
These figures are out of date
The cash position cited here is from Q1 2025, roughly 6 quarters ago. The company has almost certainly reported since. Check its latest filing before using any of this.
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