Pharmaceutical PreparationsIFRS · EUR

Terns Pharmaceuticals, Inc.

Terns Pharmaceuticals, Inc. is a U.S.-based clinical-stage biopharmaceutical company focused on discovering and developing small-molecule medicines for oncology and metabolic diseases. Its pipeline includes internally discovered drug candidates such as TERN-701 and TERN-501, along with the TERN-800 series of GIPR modulators for obesity.

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Operating profit (EBIT)-110m EUR
−8.1 %y/y
Net income-96.2m EUR
−8.3 %y/y
Free cash flow-82.2m EUR
−17.3 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-125-100-75-50-25025m EUR2020: 0.00 m EUR2020: EBIT -37 m EUR20202021: 1.0 m EUR2021: EBIT -50 m EUR20212022: 0.00 m EUR2022: EBIT -62 m EUR20222023: EBIT -103 m EUR20232024: EBIT -102 m EUR20242025: EBIT -110 m EUR2025-110
RevenueOperating profit (EBIT)

Business

Share of revenue
Oncology pipeline0 %

Small-molecule drug candidates for cancer treatment, including TERN-701 and TERN-501.

Metabolic disease pipeline0 %

Obesity-focused programs built around GIPR modulation and combination approaches.

Discovery and preclinical development0 %

Internal discovery, preclinical research, and candidate nomination activities.

Clinical development0 %

Human clinical testing and related regulatory development for pipeline assets.

Out-licensing and partnering0 %

Potential milestone-based collaboration and license arrangements for select programs.

Customers

Terns does not sell commercial products; its direct counterparties are primarily pharmaceutical partners, contract research organizations, contract manufacturers, and regulators supporting development. If programs advance, the eventual end customers are patients and prescribing physicians in oncology and obesity care, with reimbursement decisions made by payors.

Strategic pharmaceutical partners

Potential licensees or collaborators that may fund or regionalize development of TERN-701 or metabolic assets.

CRO and CMO vendors

Service providers that support discovery, manufacturing, and clinical execution.

Regulatory agencies

FDA and foreign regulators that review INDs, trial plans, and marketing applications.

Future oncology patients

Patients who would ultimately receive TERN-701 or related oncology therapies if approved.

Future obesity patients

Patients who would ultimately receive GIPR-based metabolic therapies if approved.

Strategy

Terns is prioritizing advancement of its oncology lead program, especially TERN-701, while maintaining a selective approach to metabolic assets. The company also seeks strategic partnerships for certain programs, using collaboration to extend development reach and potentially share risk and capital needs.

Advance TERN-701Short term

The company views this as its most important internal program and a key value driver.

Partner selected programsShort term

Partnerships can provide external funding, regional reach, and development support.

Build obesity pipeline selectivelyMedium term

GIPR modulation may create combination opportunities with GLP-1 therapies.

Geography

Terns is headquartered in the United States, but its development footprint is international because clinical trials, suppliers, and potential partners span China, Europe, Canada, and other jurisdictions. The company also references a greater China licensing arrangement for TERN-701, which makes regional partnering an important part of its geographic exposure.

Risks

Terns faces the typical risks of a clinical-stage biotech company: clinical failure, regulatory delay, and dependence on external capital and partners. Its programs also face intense competition in oncology and obesity, while international sourcing and trial activity create exposure to China-related trade and supply-chain disruption.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Regulatory delay or disruption1Funding dependence2China trade and supply-chain exposure3
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Regulatory delay or disruptionImpact: HighLikelihood: High

    FDA and foreign agency disruptions can slow guidance, review, and approvals.

    ExposureINDsClinical trialsMarketing applications
  2. Funding dependenceImpact: HighLikelihood: High

    The company has no product revenue and relies on external financing to fund development.

    Exposure: Operating runway and trial execution

  3. China trade and supply-chain exposureImpact: HighLikelihood: Medium

    Manufacturers, suppliers, and trial activity in China can be affected by tariffs, sanctions, or export restrictions.

    ExposureContract manufacturersGlobal trialsGreater China licensing
  4. Clinical development failureImpact: High

    Drug candidates may not demonstrate acceptable efficacy, safety, or tolerability.

    ExposureTERN-701TERN-501TERN-800 series
  5. Partnering and commercialization riskImpact: Medium

    Potential collaborators may demand favorable economics or decline to partner if competing assets look stronger.

    ExposureTERN-601TERN-501TERN-800 series

Accounting

Judgemental items
Research and development accruals

Clinical and manufacturing costs are recognized as vendors progress, so estimates affect quarterly expense timing.

Impact: Can shift operating loss between periods

License and milestone revenue

Any future collaboration revenue would depend on contract milestones and performance obligations.

Impact: Could create lumpy revenue recognition

Stock-based compensation

Equity awards and option exercises are part of the financing and compensation structure.

Impact: Affects G&A expense and equity dilution

Capitalized prepayments and trial costs

Payments made before goods or services are received may be capitalized until consumed.

Impact: Affects timing of expense recognition

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Last updated: 24/09/2026