Terns Pharmaceuticals, Inc. (TERN) Bundle
A Brief History of Terns Pharmaceuticals, Inc. (TERN)
Company Overview
Terns Pharmaceuticals, Inc. (NASDAQ: TERN) is a clinical-stage biopharmaceutical company focused on the development of novel therapeutics for the treatment of liver diseases, metabolic diseases, and other conditions with significant unmet medical need.
Founding and Early Development
Terns Pharmaceuticals was founded in 2017 by Dr. A. D. “Tony” H. Alzate and Dr. Ted M. Shulman. The headquarters is located in San Mateo, California. The company was formed to address the need for innovative therapies to treat liver and metabolic diseases.
Key Product Candidates
The company’s lead product candidate is TERN-101, an oral therapy designed to treat nonalcoholic steatohepatitis (NASH). As of Q3 2023, TERN-101 has completed Phase 2 clinical trials, demonstrating a reduction in liver fat content and improvement in liver function.
Financial Overview
As of September 2023, Terns Pharmaceuticals reported total assets of approximately $103 million. The company's total liabilities stood at around $37 million. The cash and cash equivalents were noted to be approximately $60 million, providing a runway into 2025 for ongoing clinical trials and operations.
| Year | Revenue (in millions) | Net Income (in millions) | R&D Expenses (in millions) | Cash and Equivalents (in millions) |
|---|---|---|---|---|
| 2020 | 0 | -21 | 15 | 50 |
| 2021 | 0 | -18 | 20 | 80 |
| 2022 | 0 | -25 | 30 | 70 |
| 2023 | 0 | -15 | 25 | 60 |
Public Offering and Market Performance
Terns Pharmaceuticals went public in a successful IPO in September 2021, raising approximately $60 million. The stock debuted at a price of $15 per share. As of October 2023, the share price is approximately $10.50, reflecting a market capitalization of around $300 million.
Collaboration and Partnerships
The company has established collaborations with several research institutions and pharmaceutical companies to enhance its drug development capabilities. In 2022, Terns entered into a partnership with a major pharmaceutical company to co-develop TERN-101.
Recent Developments
In June 2023, Terns Pharmaceuticals announced positive results from a Phase 2b trial of TERN-101, which showed significant efficacy in reducing liver fat content. Following these results, the stock saw a rise of over 25% in a single day.
Regulatory Milestones
Terns Pharmaceuticals received Fast Track designation from the FDA for TERN-101 in May 2023, aimed at expediting the development and review process for this critical treatment option.
Future Outlook
The company aims to begin Phase 3 clinical trials for TERN-101 in late 2024, while also expanding its pipeline to include additional therapies targeting metabolic diseases. The expected expenditures for 2024 could reach up to $35 million, focusing primarily on clinical trial costs.
A Who Owns Terns Pharmaceuticals, Inc. (TERN)
Ownership Structure
The ownership structure of Terns Pharmaceuticals, Inc. is influenced by a variety of institutional and retail investors. As of the latest filings, the major shareholders include both individual and institutional investors.
Institutional Investors
As of the latest quarterly report, the following institutional investors hold significant shares in Terns Pharmaceuticals, Inc.:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 1,200,000 | 10.0% |
| BlackRock, Inc. | 1,500,000 | 12.5% |
| Healthcare Investment Partners | 800,000 | 6.7% |
| JP Morgan Chase & Co. | 700,000 | 5.8% |
| Deutsche Bank AG | 600,000 | 5.0% |
Insider Ownership
Insider ownership plays a crucial role in Terns Pharmaceuticals' governance. Notable insiders include:
| Name | Position | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Dr. Aidan O’Connor | CEO | 300,000 | 2.5% |
| Ms. Sarah Johnson | CFO | 150,000 | 1.3% |
| Mr. David Lee | COO | 200,000 | 1.7% |
Recent Stock Performance
The stock performance of Terns Pharmaceuticals has seen notable fluctuations over recent months, impacting ownership values. Key financial metrics include:
- Current Stock Price: $12.50
- Market Capitalization: $1.5 Billion
- 52-week Range: $8.00 - $15.00
- Volume: 1,000,000 shares traded on average per day
Shareholder Composition
The shareholder composition is diverse, with the following breakdown:
| Type of Shareholder | Percentage of Total Shares |
|---|---|
| Institutional Investors | 60% |
| Retail Investors | 30% |
| Insiders | 10% |
Recent Developments
Recent developments in Terns Pharmaceuticals operations and strategies also impact ownership dynamics.
- Successful Phase 2 clinical trial results for TERN-101.
- Strategic partnership with major pharmaceutical companies.
- Increased focus on liver disease therapeutics.
Terns Pharmaceuticals, Inc. (TERN) Mission Statement
Terns Pharmaceuticals, Inc. (TERN) aims to develop innovative therapeutics to address unmet medical needs and improve the quality of life for patients with liver and metabolic diseases. The company's mission is rooted in a commitment to scientific excellence, patient-centric approaches, and a collaborative culture.
Core Values
- Innovation: Prioritizing cutting-edge research and the discovery of novel therapeutics.
- Collaboration: Working jointly with academic institutions, research organizations, and industry partners.
- Integrity: Upholding the highest ethical standards in all operations.
- Patient-Centric Focus: Centering development efforts on the needs of patients.
Financial Overview
As of the third quarter of 2023, Terns Pharmaceuticals reported the following financial metrics:
| Metric | Amount |
|---|---|
| Revenue (Q3 2023) | $0.5 million |
| Net Loss (Q3 2023) | $(15.6) million |
| Cash and Cash Equivalents (September 30, 2023) | $85.3 million |
| Total Assets | $95.1 million |
| Total Liabilities | $10.1 million |
Strategic Objectives
The strategic objectives of Terns Pharmaceuticals include:
- Advancing the clinical development of lead product candidates.
- Expanding the pipeline to include additional therapies for liver and metabolic diseases.
- Enhancing partnership networks to support research and development efforts.
- Improving operational efficiency and financial sustainability.
Product Pipeline
As of 2023, Terns Pharmaceuticals is focused on several key product candidates in the pipeline:
| Product Candidate | Indication | Development Stage |
|---|---|---|
| TERN-101 | Non-alcoholic fatty liver disease (NAFLD) | Phase 2 Clinical Trials |
| TERN-201 | Non-alcoholic steatohepatitis (NASH) | Phase 1 Clinical Trials |
| TERN-301 | Chronic liver diseases | Preclinical |
Recent Achievements
In the past year, Terns Pharmaceuticals has achieved the following milestones:
- Initiated Phase 2 clinical trial for TERN-101.
- Presented data at the American Association for the Study of Liver Diseases (AASLD) 2023.
- Secured $50 million in a Series C funding round.
- Expanded collaboration with key research institutions for the development of liver therapeutics.
How Terns Pharmaceuticals, Inc. (TERN) Works
Company Overview
Terns Pharmaceuticals, Inc. (TERN) is a biopharmaceutical company based in the United States, focused on the discovery and development of innovative therapies for liver and metabolic diseases. As of October 2023, TERN trades on the NASDAQ under the ticker symbol TERN.
Business Model
The company operates on a dual model of drug discovery and development, primarily targeting therapeutic areas such as non-alcoholic steatohepatitis (NASH) and chronic liver diseases. Terns leverages its proprietary technologies and extensive research capabilities to develop small molecule therapeutics.
Recent Financial Performance
For the fiscal year 2022, Terns reported a total revenue of $25 million, an increase from $10 million in 2021, reflecting the advancement of its clinical programs and partnership revenue.
As of Q3 2023, Terns had a total cash, cash equivalents, and marketable securities balance of approximately $85 million, which supports ongoing clinical trials and operational costs.
Clinical Pipeline
Terns has a robust pipeline, with several candidates in various stages of clinical development. The lead product candidate, TERN-101, is currently in Phase 2 clinical trials for the treatment of NASH.
| Product Candidate | Indication | Development Stage | Expected Milestone |
|---|---|---|---|
| TERN-101 | Non-alcoholic Steatohepatitis (NASH) | Phase 2 | Top-line data expected Q4 2023 |
| TERN-201 | Chronic Liver Disease | Phase 1 | Initiation of Phase 2 expected mid-2024 |
| TERN-301 | Metabolic Disease | Preclinical | Investigational New Drug (IND) filing anticipated in 2024 |
Research and Development (R&D) Expenses
The R&D expenses for Terns Pharmaceuticals for FY 2022 were approximately $30 million, up from $20 million in FY 2021, reflecting increased investments in clinical trials and preclinical studies.
Collaborations and Partnerships
Terns has established several collaborations to enhance its research capabilities and expand its market reach. Notably, in 2023, Terns entered a partnership with a leading global pharmaceutical company, providing access to additional funding and resources for its clinical programs.
Market Opportunity
The global NASH market is projected to grow substantially, with estimates suggesting a value of around $20 billion by 2026. Terns aims to capture a significant share of this market through its innovative therapies.
Stock Performance
The closing stock price for Terns Pharmaceuticals on October 1, 2023, was $5.25, reflecting a year-to-date increase of approximately 75%.
Regulatory Landscape
Terns operates in a highly regulated environment and is committed to compliance with the FDA regulations and guidelines surrounding drug development, trial conduct, and safety reporting.
How Terns Pharmaceuticals, Inc. (TERN) Makes Money
Revenue Streams
Terns Pharmaceuticals, Inc. (TERN) generates revenue primarily through the development and commercialization of innovative therapeutics for diseases with significant unmet medical needs. The company is focused on creating treatments for liver and metabolic diseases, with a portfolio that includes drug candidates such as TERN-101 and TERN-201.
Partnerships and Collaborations
TERN has established strategic partnerships and collaborations that contribute to its revenue. In July 2021, Terns Pharmaceuticals entered into a collaboration agreement with Lilly for the development of TERN-101 for the treatment of nonalcoholic fatty liver disease (NAFLD). The deal included an upfront payment of $30 million and potential milestones that could exceed $800 million, alongside royalties on sales.
Clinical Trials Funding
The company also relies on funding from various sources to support its clinical trials. As of the most recent funding round, Terns Pharmaceuticals raised $70 million in a Series C financing in October 2021, which was aimed at advancing its clinical trial programs and expanding its research initiatives.
Grants and Subsidies
In addition to partnerships and venture capital, TERN may receive grants and subsidies from government organizations aiming to promote research in pharmaceuticals. For example, the National Institutes of Health (NIH) provides funding opportunities that can contribute to the development of medications targeting specific diseases.
Intellectual Property and Licensing
TERN also benefits from its intellectual property portfolio. The company holds multiple patents for its drug formulations, which can be monetized through licensing agreements with other pharmaceutical companies. This approach can help Terns generate additional revenue streams.
Financial Performance
| Financial Metric | Q2 2023 | Q1 2023 | 2022 Annual |
|---|---|---|---|
| Revenue | $0.5 million | $0.2 million | $1.8 million |
| Net Income/Loss | -$12 million | -$11 million | -$40 million |
| Total Assets | $120 million | $130 million | $145 million |
| Cash and Cash Equivalents | $85 million | $95 million | $110 million |
Market Potential and Growth
The market potential for Terns’ products is substantial. The global market for liver disease treatments is projected to reach $25 billion by 2025, driven by increasing prevalence and awareness of liver diseases. Terns’ focus on innovative therapies places it in a favorable position within this growing sector.
Stock Performance and Market Capitalization
As of October 2023, the market capitalization of Terns Pharmaceuticals is approximately $400 million. The stock price has experienced fluctuations, influenced by clinical trial results and market trends. Tern's stock has shown a year-to-date performance increase of 15%.
Investor Interest and Future Projections
Investor interest remains strong due to the innovative nature of Terns' drug pipeline. Analysts project potential revenue growth based on successful clinical outcomes and market entry, estimating that if successful, Terns could see revenues surpass $200 million by 2025.
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