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Here are a few analogies to describe Terns Pharmaceuticals (TERN):

• An early-stage biotech company focused on developing new treatments for conditions like fatty liver disease (NASH) and obesity, similar to the research and development departments of larger pharmaceutical companies like Eli Lilly or Novo Nordisk.
• Think of it as a startup attempting to develop innovative oral drugs for obesity and metabolic diseases, competing in the same arena as the developers of blockbuster GLP-1 treatments from giants like Novo Nordisk and Eli Lilly.

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• TERN-101: A liver-distributed and non-bile acid farnesoid X receptor agonist in Phase IIa clinical trial for NASH.
• TERN-201: A vascular adhesion protein-1 inhibitor in Phase Ib clinical trial for NASH.
• TERN-501: A thyroid hormone receptor beta agonist with enhanced liver distribution and metabolic stability in Phase I clinical trial for NASH.
• TERN-601: A small-molecule Glucagon-Like Peptide-1 receptor agonist program intended for oral administration for NASH and metabolic diseases such as obesity.

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Terns Pharmaceuticals, Inc. (TERN) is a clinical-stage biopharmaceutical company focused on the development of drug candidates for non-alcoholic steatohepatitis (NASH) and obesity. As a clinical-stage company, its products are currently in various phases of clinical trials (Phase I, Phase Ib, Phase IIa) and have not yet received regulatory approval or been commercialized.

Therefore, Terns Pharmaceuticals does not currently have major customers or categories of customers who purchase its drug products. The company's primary activities are research and development and conducting clinical trials.

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Amy Burroughs, Chief Executive Officer

Amy Burroughs joined Terns Pharmaceuticals as CEO and a member of its Board of Directors in February 2024, bringing over 25 years of leadership experience. Previously, she served as CEO at Cleave Therapeutics, where she managed financings, licensing, collaborations, and clinical development. She was also an Executive in Residence at 5AM Ventures and a Senior Advisor to Crinetics Pharmaceuticals during its initial public offering. Her earlier career included commercial and strategy roles at Genentech and other high-growth therapeutics companies, as well as positions in talent and governance at Egon Zehnder International and brand management at Procter & Gamble. Ms. Burroughs holds an MBA from Harvard Business School and a BA from Dartmouth College.

Andrew Gengos, Chief Financial Officer

Andrew Gengos was appointed Chief Financial Officer of Terns Pharmaceuticals in February 2025. He brings 25 years of experience in finance and corporate strategy within the life sciences and biotechnology sectors. Prior to Terns, Mr. Gengos served as CFO of Athira Pharma, Inc. He was also Chief Business Officer at Cyteir Therapeutics, where he played a key role in taking the company public. Additionally, he held Chief Executive Officer roles at ImmunoCellular Therapeutics and Neuraltus Pharmaceuticals, and was Vice President of Strategy and Corporate Development at Amgen for eight years.

Scott Harris, Chief Development Officer

Scott Harris was appointed Chief Development Officer of Terns Pharmaceuticals in May 2024. He possesses over 25 years of extensive cross-functional experience in drug development, encompassing all stages from pre-clinical to post-marketing activities. Before joining Terns, Mr. Harris served as Chief Operating Officer of Cleave Therapeutics, where he was responsible for all research and development activities, including the clinical advancement of their investigational therapy.

Melita Sun Jung, Chief Business Officer

Melita Sun Jung serves as Chief Business Officer for Terns Pharmaceuticals. Her background includes corporate development and commercial roles at Adamas Pharmaceuticals and Ipsen, where she led marketing strategy and contributed to numerous product launches. She began her career in biotechnology venture capital and fund management at Bay City Capital and Lombard Odier Darier Hentsch. Ms. Jung earned a BA in biology from the University of California, Berkeley.

Emil Kuriakose, M.D., Chief Medical Officer

Emil Kuriakose, M.D., has served as the Chief Medical Officer of Terns Pharmaceuticals since May 2023. He has over a decade of experience in the biopharmaceutical industry, leading clinical development strategy and execution across various indications. Previously, Dr. Kuriakose was Global Clinical Program Lead at Novartis Institutes for BioMedical Research (NIBR), where he headed early development for MDM2 inhibitor and adenosine inhibitor programs in oncology and immuno-oncology.

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The key risks to Terns Pharmaceuticals' business primarily stem from the inherent challenges of being a clinical-stage biopharmaceutical company with no approved products on the market. These risks are intensified by the highly competitive and complex therapeutic areas in which the company operates.

1. Clinical Trial Failure and Regulatory Uncertainty: Terns Pharmaceuticals is a clinical-stage company, and its entire business model relies on the successful development, clinical validation, and eventual regulatory approval of its drug candidates. All of its product candidates are currently in early-stage clinical trials (Phase I, Phase Ib, Phase IIa), which carry a high risk of failure. The regulatory pathway for diseases like non-alcoholic steatohepatitis (NASH) is particularly challenging, with no U.S. FDA-approved drugs for NASH, making the approval process lengthy and costly. This risk was recently underscored by the company's decision to discontinue the development of its oral GLP-1 receptor agonist, TERN-601, for obesity. This discontinuation was due to "uncompetitive" Phase II results, including lackluster weight loss efficacy and concerning safety signals such as liver enzyme elevations, directly demonstrating the materialization of clinical trial failure risk.
2. Financial Dependence on a Limited Pipeline and Sustained Operating Losses: As a clinical-stage company, Terns Pharmaceuticals has incurred significant losses since its inception and anticipates continued substantial losses for the foreseeable future. The company's valuation is heavily based on the potential future success of its clinical pipeline rather than current profitability, given its substantial operating expenses, particularly in research and development, and a lack of revenue growth. Following the discontinuation of TERN-601, the company has pivoted its primary focus, with its investment thesis now largely centered on the success of TERN-701, a BCR-ABL inhibitor for chronic myeloid leukemia. This pivot indicates a high dependence on a limited number of pipeline assets, making the company highly susceptible to setbacks in any single program.
3. Intense Competition: Terns Pharmaceuticals operates in highly competitive biopharmaceutical markets, particularly in the development of treatments for NASH and, historically, obesity. Many larger pharmaceutical companies and other biotechnology firms are actively pursuing therapies in these areas, making it challenging for Terns to differentiate its product candidates and secure significant market share, even if they achieve regulatory approval. The high number of failures in NASH drug development programs by various companies further highlights the competitive and difficult landscape.

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The rapid and widespread adoption of highly effective injectable Glucagon-Like Peptide-1 (GLP-1) receptor agonists (e.g., Wegovy, Zepbound) for obesity treatment. These established therapies set an extremely high bar for efficacy and have captured significant market share, potentially diminishing the future commercial viability of Terns' early-stage, orally administered GLP-1 receptor agonist program (TERN-601), even if it proves effective.

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NASH Market Size

Obesity Market Size

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Share Issuance

• Terns Pharmaceuticals completed an underwritten public offering in December 2025, raising $747.5 million in gross proceeds from the sale of 18,687,500 shares of common stock at $40.00 per share, which included the full exercise of the underwriters' option to purchase additional shares.
• In September 2024, the company executed a capital call, resulting in net proceeds of $161.9 million through the issuance of shares at $10.50 per share.

Inbound Investments

• In 2021, Hansoh in-licensed TERN-701, a BCR-ABL inhibitor, for an upfront payment of $1 million, with potential for Terns to receive up to $67 million in milestones and mid-single-digit royalties.

Capital Expenditures

• The primary focus of capital allocation, especially from the December 2025 public offering's net proceeds, is directed towards funding research, clinical trials, development, and manufacturing of key product candidates, including TERN-701, and initial preparations for its potential future commercial launch.
• The company’s cash, cash equivalents, and marketable securities were approximately $1.0 billion as of December 31, 2025, and are expected to fund operations into 2031, supporting activities including the potential approval and launch of TERN-701.
• Terns Pharmaceuticals reported generating -$19.8 million in free cash flow in Q3 2025, which represents cash available after capital expenditures and operational expenses.