Terns Pharmaceuticals, Inc., a rapidly emerging clinical-stage biotechnology company focused on developing small-molecule therapies for obesity and oncology, is preparing a $150 million initial public offering (IPO) to support its expanding clinical pipeline. With rising investor momentum around metabolic disease and next-generation cancer treatments, Terns’ potential market entry comes at a pivotal moment for the biopharmaceutical sector.
Company Background
Founded in 2016 and headquartered in Foster City, California, Terns Pharmaceuticals has built its strategy around discovering and developing orally administered small-molecule drugs that address major global health burdens. The company employs 59 full-time staff and operates as a focused but highly specialized clinical-stage organization.
Terns’ pipeline spans several therapeutic areas. Its lead oncology candidate, TERN-701, is an allosteric BCR-ABL tyrosine kinase inhibitor now in Phase 1 trials for chronic myeloid leukemia, a disease driven by genetic abnormalities within bone marrow cells. This program is designed to overcome resistance mechanisms associated with existing CML therapies.
The company is also targeting metabolic liver disease with TERN-501, a thyroid hormone receptor-beta agonist currently in Phase IIa development for metabolic dysfunction–associated steatohepatitis (MASH). With no approved MASH therapies yet on the market, competition among late-stage candidates is intensifying, and Terns is positioning itself as a differentiated entrant due to the compound’s liver-targeted distribution and stability profile.
Additionally, the company is expanding into the obesity market through TERN-601, an orally administered GLP-1 receptor agonist designed to compete in a field now dominated by injectable semaglutide-based treatments. Terns is further exploring GIPR modulation with its TERN-800 series, aimed at creating dual-pathway small-molecule therapies for metabolic disorders.
IPO Details
Terns Pharmaceuticals is pursuing an estimated $150 million IPO, and it plans to remain listed on the NASDAQ under its existing ticker symbol, TERN. Official pricing terms have yet to be released.
Proceeds from the IPO are expected to fund clinical advancement of TERN-701, support mid-stage trials for TERN-501, accelerate development of TERN-601 and the TERN-800 series, and strengthen research capabilities for future metabolic and oncology programs. The funding will also contribute to manufacturing readiness and early commercial planning should any of its programs advance toward regulatory filings.
Market Context & Opportunities
Terns’ IPO arrives during a period of extraordinary growth in both the obesity and oncology markets. The global demand for GLP-1–based therapies has surged, creating significant opportunities for companies developing alternative formulations, particularly oral small-molecule candidates that could offer enhanced convenience and accessibility. The oncology market remains one of the most attractive sectors for investors given the persistent need for resistance-breaking cancer therapies, especially in diseases such as chronic myeloid leukemia where long-term treatment is common.
At the same time, the emerging therapeutic category of MASH represents a multibillion-dollar market with large unmet need. Companies with differentiated mechanisms or more favorable safety profiles stand to capture significant value as the field matures. Terns’ focus on oral candidates and targeted biological pathways gives it an opportunity to compete across three highly attractive therapeutic areas simultaneously.
Risks & Challenges
Despite the promise surrounding its programs, Terns faces notable risks typical of early-stage biopharmaceutical companies. None of its product candidates have reached Phase 3 trials, and success will depend heavily on ongoing clinical results. The company also operates with a small workforce and limited infrastructure compared to larger biotechnology competitors.
Terns’ ISS Governance QualityScore indicates elevated governance risk, particularly in audit, shareholder rights, and compensation categories, which may concern some institutional investors. Additionally, the markets it aims to enter—obesity, MASH, and oncology—are intensely competitive, with established players advancing strong pipelines of their own. Finally, the company may require additional capital beyond this IPO depending on the scope of future clinical development.
Closing Paragraph
As Terns Pharmaceuticals moves toward a $150 million IPO, the company is positioning itself at the intersection of two of the fastest-growing arenas in modern medicine: metabolic disease and precision oncology. With multiple promising small-molecule therapies advancing through development and strong momentum behind obesity and cancer therapeutics, Terns stands at a potential inflection point. The key question is whether this IPO will propel Terns into the next generation of biotech innovators, or whether the challenges of clinical execution and competitive pressure will determine the pace of its rise.
