Here are 1-3 brief analogies for Terns Pharmaceuticals:

• A pre-commercial Regeneron Pharmaceuticals, focused on a pipeline of drugs for liver disease and oncology.

• An aspiring Vertex Pharmaceuticals, developing new medicines for NASH and certain cancers.

• TERN-701: An allosteric BCR-ABL tyrosine kinase inhibitor (TKI) in clinical development for the treatment of chronic myeloid leukemia (CML).
• TERN-501: A thyroid hormone receptor-beta (THR-β) agonist currently in clinical trials for the treatment of metabolic dysfunction-associated steatohepatitis (MASH).
• TERN-601: An investigational small molecule glucagon-like peptide-1 (GLP-1) receptor agonist being developed for the treatment of obesity.

Terns Pharmaceuticals (TERN) is a clinical-stage biopharmaceutical company focused on developing a pipeline of small molecule product candidates for serious diseases. As a clinical-stage company, it does not currently sell commercial products directly to individuals (patients) or pharmacies.

Instead, its revenue is primarily derived from strategic collaborations and licensing agreements with other pharmaceutical companies for the development and potential commercialization of its drug candidates.

Its major identified partner and collaborator is:

• Genentech (a member of the Roche Group) - Roche Holding AG (SIX: ROG, OTCQX: RHHBY)

Terns entered into a significant collaboration agreement with Genentech for the global development and commercialization of TERN-501 (a thyroid hormone receptor-beta agonist) for the treatment of non-alcoholic steatohepatitis (NASH). Under this agreement, Terns received an upfront payment and is eligible for future milestone payments and royalties on potential sales.

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Amy Burroughs, Chief Executive Officer and Interim Principal Financial Officer

Amy Burroughs joined Terns Pharmaceuticals as Chief Executive Officer and a member of its Board of Directors in February 2024, bringing over 25 years of leadership experience. She currently also serves as the Interim Principal Financial Officer. Prior to Terns, Ms. Burroughs served as CEO at Cleave Therapeutics, where she was responsible for leading the company through financings, spearheading licensing and collaboration deals, and overseeing the clinical development of its investigational therapy for acute myeloid leukemia. She was also an Executive in Residence at 5AM Ventures and, in parallel, a Senior Advisor to Crinetics Pharmaceuticals during its initial public offering. Earlier in her career, she held roles of increasing responsibility in commercial and strategy at Genentech, as well as commercial and business development positions at other high-growth therapeutics companies. Ms. Burroughs earned her MBA from Harvard Business School and her BA from Dartmouth College. She is a member of the board and audit committees at Tenaya Therapeutics.

David Strauss, Interim Principal Accounting Officer and Vice President of Finance and Controller

David Strauss serves as the Interim Principal Accounting Officer and Vice President of Finance and Controller at Terns Pharmaceuticals. He has been with the company since January 2021. Mr. Strauss has a history of financial leadership roles within the biopharmaceutical industry and holds a bachelor's degree in business administration.

Scott Harris, Chief Development Officer

Scott Harris was appointed Chief Development Officer effective May 28, 2024, bringing more than 25 years of broad cross-functional experience in drug development. Most recently, Mr. Harris served as Chief Operating Officer of Cleave Therapeutics, a clinical-stage hematology oncology company, where he oversaw all research and development activities, including the clinical advancement of its investigational therapy for acute myeloid leukemia.

Emil Kuriakose, Chief Medical Officer

Emil Kuriakose serves as the Chief Medical Officer at Terns Pharmaceuticals. Prior to joining Terns, he was the Global Clinical Program Lead at Novartis Institutes for BioMedical Research (NIBR). In that role, he was the global head of early development for MDM2 inhibitor and adenosine inhibitor programs in solid and hematologic malignancies, responsible for the development and execution of clinical development plans from candidate selection to clinical proof-of-concept.

Melita Sun Jung, Chief Business Officer

Melita Sun Jung was appointed Chief Business Officer, effective April 22, 2024, bringing over 20 years of experience in the life sciences industry. She has led corporate strategy and business development, commercial planning and execution, financings, and investment management. Most recently, she served as Chief Business Officer at Structure Therapeutics, where she was responsible for business strategy, partnering initiatives, commercial planning, corporate branding, and communications, and was part of the executive team that completed its initial public offering (IPO) in 2023. Previously, Ms. Jung was Senior Vice President and Head of Business Development at Sangamo Therapeutics, where she led collaboration and licensing deals with a potential value exceeding $6 billion. Her career began in biotechnology venture capital and fund management at Bay City Capital and Lombard Odier Darier Hentsch. She holds a BA in biology from the University of California, Berkeley.

The key risks to Terns Pharmaceuticals (TERN) are primarily associated with the inherent uncertainties of the biopharmaceutical industry, particularly concerning clinical development and market competition.

1. Clinical Trial Failure and Regulatory Approval Risk: As a clinical-stage biopharmaceutical company, Terns Pharmaceuticals' success is heavily dependent on the successful outcome of its ongoing and future clinical trials and subsequent regulatory approvals. There are significant risks of delays, setbacks, or outright failures in clinical trials, which can increase costs, delay potential revenue generation, and harm the company's prospects. Even promising early-stage results may not be predictive of success in later-stage trials. The pharmaceutical industry has a high overall clinical trial failure rate, with substantial financial losses associated with each failed trial. This risk was recently underscored by Terns Pharmaceuticals' decision to discontinue the development of TERN-601 for obesity after Phase 2 study results did not support further progression.
2. Lack of Commercial Products and Sustained Profitability: Terns Pharmaceuticals currently operates without commercial products and does not generate revenue from drug sales, leading to consistent cash expenditure and ongoing losses. While the company has demonstrated a strong cash position expected to provide a financial runway into 2028, the significant investment required for late-stage clinical trials and potential commercialization could strain its finances. This reliance on capital raises and the absence of a revenue-generating product classify the company as "Distressed" due to its lack of profitability.
3. Intense Competition: Terns Pharmaceuticals operates in highly competitive therapeutic areas, including oncology (Chronic Myeloid Leukemia - CML) and metabolic diseases. For its lead product candidate, TERN-701, in CML, it must differentiate itself or demonstrate superiority over existing treatments, such as asciminib, to capture significant market share. The broader biotechnology and pharmaceutical landscape features numerous companies vying for market share with established and emerging therapies.

Emerging Threats to Terns Pharmaceuticals (TERN):

• Competition in MASH (NASH) with the Approval of Rezdiffra (Resmetirom): Madrigal Pharmaceuticals' Rezdiffra (resmetirom), a THR-beta agonist, received FDA accelerated approval in March 2024 as the first and only drug for the treatment of MASH (formerly NASH) with fibrosis. This directly threatens Terns Pharmaceuticals' lead MASH candidate, TERN-501, which is also a THR-beta agonist. Rezdiffra's established market entry and clinical data set a high bar for TERN-501 to demonstrate competitive differentiation and secure market share.
• Dominance and Rapid Innovation in the GLP-1/Obesity Market: The market for obesity and metabolic disorders is heavily dominated by pharmaceutical giants such as Novo Nordisk (with Wegovy/Ozempic) and Eli Lilly (with Zepbound/Mounjaro), whose GLP-1 and dual GLP-1/GIP receptor agonists have demonstrated significant efficacy and safety profiles. Terns Pharmaceuticals' TERN-601, an investigational oral GLP-1 receptor agonist, faces intense competition from these established leaders and their rapidly expanding pipelines, which include highly efficacious multi-agonists (e.g., tirzepatide, retatrutide) and continued development of oral formulations. The high efficacy, established market presence, and ongoing innovation from these larger companies pose a significant barrier for TERN-601 to achieve meaningful market penetration and differentiation.

Terns Pharmaceuticals (TERN) has several product candidates in its pipeline targeting various diseases, each with a distinct addressable market.

• TERN-701 (Chronic Myeloid Leukemia - CML): The global market for next-generation tyrosine kinase inhibitors (TKIs) for CML is projected to exceed $3 billion by 2030. Terns Pharmaceuticals' own research indicates a $5 billion market for CML. In the U.S., CML is considered an orphan indication with over 9,000 new cases diagnosed annually.
• TERN-601 (Obesity): The obesity treatment market was valued at $15 billion globally in 2025.
• TERN-501 (Metabolic Dysfunction-Associated Steatohepatitis - MASH, formerly NASH): The global NASH/MASH treatment market is expected to reach US$ 31.76 billion by 2033. The market size for MASH in the U.S. alone was approximately $1.51 billion in 2023, with projections for further increase by 2034. The North American MASH treatment market is expected to reach US$ 17.15 billion by 2033.
• TERN-101 (Nonalcoholic Steatohepatitis - NASH): In 2018, when Terns Pharmaceuticals acquired licensing rights for NASH candidates including TERN-101, the market for NASH was estimated at $40 billion.

Terns Pharmaceuticals (TERN) is a clinical-stage biopharmaceutical company, and as such, it is not currently generating significant product revenue. Future revenue growth over the next 2-3 years will primarily be driven by the advancement of its pipeline candidates and strategic partnerships.

Here are 3-5 expected drivers of future revenue growth for Terns Pharmaceuticals:

1. Advancement and Potential Commercialization of TERN-701 for Chronic Myeloid Leukemia (CML): TERN-701 is an oral BCR-ABL tyrosine kinase inhibitor (TKI) that has shown promising early-stage results and is being developed for CML. The company is focused on rapidly advancing TERN-701 towards a pivotal trial with the goal of bringing a potential best-in-class therapy to market. Key Phase 1 CARDINAL trial data for TERN-701 is anticipated in the fourth quarter of 2025, which could provide crucial insights into its efficacy and safety profile. The CML market is substantial, with an estimated size of $5 billion.
2. Successful Partnering of TERN-601 for Obesity: TERN-601 is an oral small molecule GLP-1 receptor agonist targeting the rapidly growing obesity treatment market. Terns Pharmaceuticals plans to stop investing in metabolic disease clinical development beyond year-end 2025 and seeks to partner its metabolic assets, including TERN-601, for Phase 3 development and commercialization. Favorable top-line data from the Phase 2 FALCON trial, expected in early fourth quarter 2025, could establish TERN-601 as a leading oral option and drive significant revenue growth through partnership agreements, including upfront payments, milestone payments, and future royalties.
3. Partnerships for Other Metabolic Disease Assets (TERN-501 and TERN-800 series): Beyond TERN-601, Terns has other metabolic programs available for partnering, including TERN-501 (a THR-β agonist for MASH/NASH/obesity) and the TERN-800 series (GIPR antagonists for obesity). Successful out-licensing or collaboration agreements for these assets would provide Terns with revenue streams in the form of upfront payments, development milestones, and potential royalties, supporting its strategic focus on oncology.

Share Issuance

• Terns Pharmaceuticals raised net proceeds of $132.9 million at $17 per share during its initial public offering in February 2021.
• In August 2022, the company conducted an underwritten public offering that generated approximately $65.0 million in gross proceeds from the sale of common stock and pre-funded warrants.
• A public offering in September 2024 closed, raising approximately $172.7 million in gross proceeds, which included common stock and pre-funded warrants.

Inbound Investments

• Hansoh in-licensed TERN-701 in 2021, providing $1 million for exercising an option, with potential for Terns to receive milestone payments totaling $67 million and mid-single digit royalties.
• The August 2022 public offering was oversubscribed and led by new investors Fairmount and Venrock Healthcare Capital Partners, alongside existing healthcare investors.

Capital Expenditures

• Research and Development (R&D) expenses were $70.1 million for the full year 2024, increasing from $63.5 million in 2023, and are expected to continue to increase.
• Proceeds from share offerings are intended to fund research, clinical trials, development, and manufacturing of key product candidates such as TERN-701, TERN-601, and the TERN-800 series.
• The company's cash, cash equivalents, and marketable securities of $295.6 million as of September 30, 2025, are expected to provide a cash runway into 2028, primarily supporting operating expenses including R&D.