ORBIMED Reduces Stake in Terns Pharmaceuticals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy TERN?
Source: Fool
- Share Reduction Transaction: According to a SEC filing dated February 17, 2026, ORBIMED Advisors LLC sold 5,409,671 shares of Terns Pharmaceuticals for approximately $125 million, indicating a potential decrease in confidence regarding the company's future prospects.
- Holding Changes: Following this sale, ORBIMED retains 2,153,300 shares of Terns, with a value decrease of $30.20 million, reflecting fluctuations in market expectations for its clinical pipeline.
- Market Performance: As of February 17, 2026, Terns' stock price stood at $39.58, marking an 858.4% increase over the past year, significantly outperforming the S&P 500 by 862.96 percentage points, showcasing strong market confidence in its biotech potential.
- Investor Focus: With upcoming clinical data releases, investors should monitor Terns' cash flow and trial results to assess whether its pipeline justifies the current high valuation, especially since robust data is crucial for sustaining valuation in the biotech sector.
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Analyst Views on TERN
Wall Street analysts forecast TERN stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 52.950
Low
35.00
Averages
54.22
High
60.00
Current: 52.950
Low
35.00
Averages
54.22
High
60.00
About TERN
Terns Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is engaged in developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity. Its product candidates in pipeline includes TERN-701, TERN-601 and TERN-501. TERN-701 is its oral, potent, allosteric BCR-ABL tyrosine kinase inhibitors (TKI) specifically targeting the ABL myristoyl pocket for CML, a form of cancer that begins in the bone marrow and leads to the growth of leukemic cells. TERN-601 is a small-molecule glucagon-like peptide-1 receptor (GLP-1R) agonist that is intended to be orally administered for obesity. TERN-501 is a thyroid hormone receptor beta (THR-b) agonist with high metabolic dysfunction-associated steatohepatitis (MASH). It is also focused on developing the TERN-800 series of small-molecule glucose-dependent insulinotropic polypeptide receptor (GIPR) modulators for obesity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Terns Receives FDA Breakthrough Therapy Designation for TERN-701
- FDA Breakthrough Designation: Terns Pharmaceuticals announced that its oral allosteric BCR::ABL1 inhibitor TERN-701 has received Breakthrough Therapy Designation from the FDA for adult patients with Ph+ CML in chronic phase previously treated with two or more TKIs, indicating significant clinical potential.
- Clinical Trial Progress: TERN-701 has shown promising efficacy in the ongoing CARDINAL clinical trial, with encouraging rates of major molecular response and deep molecular response observed at week 24, particularly in patients with treatment failure, highlighting its importance in treatment options.
- Safety and Tolerability: The majority of treatment-emergent adverse events were reported as low grade, with a low incidence of severe adverse events, demonstrating TERN-701's advantages in safety and tolerability, potentially offering better treatment options for CML patients.
- Strategic Partnership Outlook: This FDA designation, along with Merck's agreement to acquire Terns, may accelerate TERN-701's advancement to pivotal trial stages, further propelling its commercialization efforts to meet significant unmet medical needs.
See More
TERNS PHARMACEUTICALS INC.: OPPENHEIMER LOWERS RATING TO PERFORM FROM OUTPERFORM
Company Overview: Terns Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing innovative therapies for patients with unmet medical needs.
Recent Performance: The company has recently experienced a decline in stock performance, attributed to various market factors and investor sentiment.
Strategic Changes: Terns is implementing strategic changes to enhance its operational efficiency and improve overall performance in the competitive pharmaceutical landscape.
Future Outlook: The company aims to regain investor confidence and improve its market position through upcoming product developments and strategic partnerships.
See More
TERNS PHARMACEUTICALS INC: OPPENHEIMER LOWERS RATING TO PERFORM FROM OUTPERFORM
Company Overview: Tern Pharmaceuticals is a company focused on developing innovative therapeutics in the pharmaceutical sector.
Recent Performance: The company has recently experienced a decline in performance, moving from an outperforming status to a cut in performance ratings.
See More
Merck's $6.7B Acquisition of Terns Clears Regulatory Hurdles
- Regulatory Approval: Merck's $6.7 billion acquisition of Terns Pharmaceuticals has successfully passed the Hart-Scott-Rodino Act review, indicating no antitrust concerns from regulators, which ensures a smooth transaction process.
- Cash Tender Offer: Merck will acquire all outstanding shares of Terns at $53.00 each, a price that reflects high confidence in Terns' future potential while providing substantial returns for investors.
- Expected Closing: The deal is anticipated to close in Q2 2024, providing Merck with a strategic opportunity to position itself ahead of the Keytruda patent cliff, which is critical for maintaining revenue streams.
- Positive Market Reaction: This acquisition is viewed as part of Merck's aggressive M&A strategy to navigate the impending Keytruda patent expiration, demonstrating the company's commitment to expanding its portfolio and investing in new drug development.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation: Halper Sadeh LLC is investigating companies such as Terns Pharmaceuticals, Inc., Soleno Therapeutics, Inc., and Whitestone REIT for potential violations of federal securities laws or breaches of fiduciary duties, highlighting concerns for investor rights.
- Transaction Price Analysis: Both Terns Pharmaceuticals and Soleno Therapeutics are being acquired at $53.00 per share, while Whitestone REIT is being sold for $19.00 per share or unit, suggesting these prices may not reflect the companies' true values, potentially leading to investor losses.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, committing to handle related matters at no upfront cost, aiming to provide legal support for affected investors.
- Legal Fee Arrangement: The firm states it will operate on a contingency fee basis, meaning shareholders will not be responsible for upfront legal fees and expenses, thereby reducing the legal risk for investors.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Background: Halper Sadeh LLC is investigating Whitestone REIT (NYSE:WSR) for its sale to Ares Management Corporation at $19.00 per share, potentially violating fiduciary duties to shareholders and impacting their rights.
- Transaction Details: Terns Pharmaceuticals, Inc. (NASDAQ:TERN) is being sold to Merck for $53.00 per share in cash, with Halper Sadeh LLC suggesting that terms may limit superior competing offers, urging shareholders to be aware of their rights.
- Merger Impact: The merger of Rallybio Corporation (NASDAQ:RLYB) with Candid Therapeutics, Inc. is expected to result in Rallybio shareholders owning approximately 3.65% of the combined entity, prompting Halper Sadeh LLC to seek increased compensation for shareholders.
- Legal Support: Halper Sadeh LLC offers no-cost legal consultations aimed at securing additional rights for investors affected by securities fraud and corporate misconduct, highlighting their commitment to protecting investor interests.
See More
Terns Receives FDA Breakthrough Therapy Designation for TERN-701
- FDA Breakthrough Designation: Terns Pharmaceuticals announced that its oral allosteric BCR::ABL1 inhibitor TERN-701 has received Breakthrough Therapy Designation from the FDA for adult patients with Ph+ CML in chronic phase previously treated with two or more TKIs, indicating significant clinical potential.
- Clinical Trial Progress: TERN-701 has shown promising efficacy in the ongoing CARDINAL clinical trial, with encouraging rates of major molecular response and deep molecular response observed at week 24, particularly in patients with treatment failure, highlighting its importance in treatment options.
- Safety and Tolerability: The majority of treatment-emergent adverse events were reported as low grade, with a low incidence of severe adverse events, demonstrating TERN-701's advantages in safety and tolerability, potentially offering better treatment options for CML patients.
- Strategic Partnership Outlook: This FDA designation, along with Merck's agreement to acquire Terns, may accelerate TERN-701's advancement to pivotal trial stages, further propelling its commercialization efforts to meet significant unmet medical needs.
See More
TERNS PHARMACEUTICALS INC.: OPPENHEIMER LOWERS RATING TO PERFORM FROM OUTPERFORM
Company Overview: Terns Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing innovative therapies for patients with unmet medical needs.
Recent Performance: The company has recently experienced a decline in stock performance, attributed to various market factors and investor sentiment.
Strategic Changes: Terns is implementing strategic changes to enhance its operational efficiency and improve overall performance in the competitive pharmaceutical landscape.
Future Outlook: The company aims to regain investor confidence and improve its market position through upcoming product developments and strategic partnerships.
See More
TERNS PHARMACEUTICALS INC: OPPENHEIMER LOWERS RATING TO PERFORM FROM OUTPERFORM
Company Overview: Tern Pharmaceuticals is a company focused on developing innovative therapeutics in the pharmaceutical sector.
Recent Performance: The company has recently experienced a decline in performance, moving from an outperforming status to a cut in performance ratings.
See More
Merck's $6.7B Acquisition of Terns Clears Regulatory Hurdles
- Regulatory Approval: Merck's $6.7 billion acquisition of Terns Pharmaceuticals has successfully passed the Hart-Scott-Rodino Act review, indicating no antitrust concerns from regulators, which ensures a smooth transaction process.
- Cash Tender Offer: Merck will acquire all outstanding shares of Terns at $53.00 each, a price that reflects high confidence in Terns' future potential while providing substantial returns for investors.
- Expected Closing: The deal is anticipated to close in Q2 2024, providing Merck with a strategic opportunity to position itself ahead of the Keytruda patent cliff, which is critical for maintaining revenue streams.
- Positive Market Reaction: This acquisition is viewed as part of Merck's aggressive M&A strategy to navigate the impending Keytruda patent expiration, demonstrating the company's commitment to expanding its portfolio and investing in new drug development.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation: Halper Sadeh LLC is investigating companies such as Terns Pharmaceuticals, Inc., Soleno Therapeutics, Inc., and Whitestone REIT for potential violations of federal securities laws or breaches of fiduciary duties, highlighting concerns for investor rights.
- Transaction Price Analysis: Both Terns Pharmaceuticals and Soleno Therapeutics are being acquired at $53.00 per share, while Whitestone REIT is being sold for $19.00 per share or unit, suggesting these prices may not reflect the companies' true values, potentially leading to investor losses.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, committing to handle related matters at no upfront cost, aiming to provide legal support for affected investors.
- Legal Fee Arrangement: The firm states it will operate on a contingency fee basis, meaning shareholders will not be responsible for upfront legal fees and expenses, thereby reducing the legal risk for investors.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Background: Halper Sadeh LLC is investigating Whitestone REIT (NYSE:WSR) for its sale to Ares Management Corporation at $19.00 per share, potentially violating fiduciary duties to shareholders and impacting their rights.
- Transaction Details: Terns Pharmaceuticals, Inc. (NASDAQ:TERN) is being sold to Merck for $53.00 per share in cash, with Halper Sadeh LLC suggesting that terms may limit superior competing offers, urging shareholders to be aware of their rights.
- Merger Impact: The merger of Rallybio Corporation (NASDAQ:RLYB) with Candid Therapeutics, Inc. is expected to result in Rallybio shareholders owning approximately 3.65% of the combined entity, prompting Halper Sadeh LLC to seek increased compensation for shareholders.
- Legal Support: Halper Sadeh LLC offers no-cost legal consultations aimed at securing additional rights for investors affected by securities fraud and corporate misconduct, highlighting their commitment to protecting investor interests.
See More
