Tempest Therapeutics, Inc. (TPST): History, Ownership, Mission, How It Works & Makes Money

Tempest Therapeutics, Inc. (TPST) is a clinical-stage oncology firm with a promising pipeline, but can a biotechnology company with a market capitalization of roughly $41.65 million truly compete in the high-stakes cancer therapy space?

As a seasoned analyst, I see the immediate financial pressure: the company ended Q3 2025 with only $7.5 million in cash and equivalents, a sharp drop from $30.3 million at the end of 2024, which is why management is actively exploring strategic alternatives to maximize stockholder value.

Still, their lead asset, amezalpat (a PPARα antagonist), has secured crucial FDA Fast Track and Orphan Drug designations for first-line hepatocellular carcinoma (HCC), meaning the underlying science is defintely strong. So, how does a company with a year-to-date net loss of $22.2 million still hold such high potential in its core mission, and what does its unique ownership structure tell you about its next move?

Tempest Therapeutics, Inc. (TPST) History

Given Company's Founding Timeline

You need to understand a company's roots to assess its future, and Tempest Therapeutics, Inc. is a great example of a biotech firm that has consistently pivoted to follow the science. It started with a clear focus on small molecule oncology, and that focus has largely held, even through major corporate changes.

Year established

Tempest Therapeutics was established in 2011.

Original location

The company is headquartered in Brisbane, California, a key biotech hub near South San Francisco.

Founding team members

The initial founding team included Tom Dubensky, Ph.D., who served as the President and Chief Executive Officer, and Sam Saks.

Initial capital/funding

The company secured significant early funding, including a Series A financing round in 2012 that raised $30 million, led by Versant Ventures. This initial capital was crucial for advancing their pipeline of small molecule therapeutics. Total funding has since reached $88.2 million across two rounds.

Given Company's Evolution Milestones

The journey from a startup to a clinical-stage public company is never a straight line. Here's a look at the key moments that shaped Tempest Therapeutics' trajectory, showing how they moved from early-stage discovery to late-stage clinical trials for their lead drug candidate, amezalpat (TPST-1120).

Given Company's Transformative Moments

The biggest shifts for Tempest Therapeutics have centered on strategic focus and financial runway. The core business is highly capital-intensive, so every funding event and pipeline decision is a high-stakes bet.

The most transformative decision was the strategic merger with Millendo Therapeutics in 2021. This was the move that got them onto the public markets, which is a massive step for any clinical-stage biotech. It gave them the platform and capital to pursue late-stage development. You can see the impact of this in their current market capitalization of about $46.7 million as of late October 2025.

More recently, 2025 has been a year of sharp realignment and crucial regulatory wins:

• Prioritizing Amezalpat: The decision to focus resources almost entirely on amezalpat (TPST-1120) for first-line HCC was pivotal. This was reinforced by the positive randomized Phase 2 data and the subsequent Fast Track and Orphan Drug designations from the FDA, making the drug Phase 3-ready.
• Exploring Strategic Alternatives: In April 2025, the company announced it was exploring a full range of strategic alternatives, including partnerships or a sale. This move, coupled with a workforce reduction, was a clear signal of cash constraints, despite the clinical progress.
• Cash Management and Dilution: To manage the burn rate, the company executed a registered direct offering in June 2025, raising $4.6 million in net proceeds. This is a necessary evil in biotech; you raise capital to fund trials, but it dilutes shareholder value. As of September 30, 2025, their cash position was down to $7.5 million, highlighting the urgency of their strategic review.
• Pipeline Expansion for Runway: The November 2025 deal to acquire the Factor Bioscience CAR-T programs is a calculated risk. It diversifies the pipeline into cell therapy and, crucially, is projected to extend their cash runway to mid-2027. This buys them time to advance amezalpat through business development discussions, which is defintely a smart play.

For a deeper dive into who is betting on these transformative moments, you should check out Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who's Buying and Why?

Tempest Therapeutics, Inc. (TPST) Ownership Structure

The ownership structure of Tempest Therapeutics, Inc. is undergoing a dramatic, near-term shift following a strategic all-stock acquisition announced in November 2025, which will hand majority control to the acquiring entity's equityholders.

This is a classic biotech pivot; the company is trading a majority stake for a new clinical pipeline and a cash runway extension into mid-2027.

Given Company's Current Status

Tempest Therapeutics, Inc. (TPST) is a publicly traded, clinical-stage biotechnology company, listed on the Nasdaq Stock Market.

As of November 2025, the company is in a major transition, having announced an all-stock acquisition of CAR T-cell therapy assets from Factor Bioscience and its affiliate, Erigen LLC.

This deal, expected to close in early 2026, fundamentally re-shapes the company's financial and strategic profile, effectively giving the Factor Bioscience equityholders a dominant ownership position.

For the 2025 fiscal year, the company's financial position was tight, reporting a net loss of $22.2 million year-to-date through September 30, 2025, with cash and cash equivalents dropping to $7.5 million at that time.

Given Company's Ownership Breakdown

The table below reflects the projected ownership breakdown upon the closing of the Factor Bioscience acquisition, which was announced in November 2025 and is the new reality for the company. This transaction involves issuing approximately 8.27 million new shares of common stock, which will result in significant shareholder dilution for existing investors.

The critical takeaway here is the total control shift: Erigen's equityholders will collectively own about 65% of the enlarged company, giving them significant influence over the future direction.

Before this deal, institutional ownership was around 18.87%, with insiders holding a minimal 0.11%. That structure is defintely obsolete now. You can dive deeper into the pre-deal investors here: Exploring Tempest Therapeutics, Inc. (TPST) Investor Profile: Who's Buying and Why?

Given Company's Leadership

The leadership team is being fundamentally restructured as part of the strategic transaction announced on November 19, 2025, bringing in new management aligned with the acquired CAR T-cell programs.

The new team steering the company, post-closing, includes:

• Dr. Matt Angel: Appointed President and Chief Executive Officer (CEO), effective upon closing of the acquisition, replacing Stephen Brady.
• Stephen Brady: Expected to transition from CEO to serve as the biotech's Board Chair.
• Nicholas Maestas: Chief Financial Officer (CFO) and Head of Corporate Strategy.
• Dr. Sam Whiting: Executive Vice President and Chief Medical Officer.

This change is a clear signal that the company's focus is now squarely on advancing the newly acquired assets, like the dual CD19/BCMA CAR-T program, TPST-2003.

Tempest Therapeutics, Inc. (TPST) Mission and Values

Tempest Therapeutics, Inc. stands for a singular, critical purpose: developing first-in-class small molecule drugs that fight cancer by attacking tumors directly and activating the patient's own immune system. This dual-action approach defines their mission to bring meaningful, life-changing therapies to patients with high unmet medical needs.

You're looking at a clinical-stage biotech, so the mission isn't just a poster on the wall-it's the science itself. Their dedication to this purpose is what drives the high research and development (R&D) spend, even as the company navigates a strategic alternatives process to maximize value for stakeholders and patients. You can see this tension in the 2025 financials: the year-to-date net loss through September 30, 2025, was $22.2 million, a necessary cost of advancing high-potential programs like amezalpat (TPST-1120) and TPST-1495.

Given Company's Core Purpose

The company's core purpose is to translate complex biology into clinical realities that fundamentally change cancer treatment. Their focus is on small molecule therapeutics (drugs often taken as a pill) that target key pathways in the tumor microenvironment (TME), which is the area immediately surrounding a tumor. That's a huge potential game-changer.

Here's the quick math: if a drug candidate like amezalpat, which is poised for a pivotal Phase 3 study in first-line hepatocellular carcinoma (HCC), succeeds, the return on that $22.2 million year-to-date investment is massive.

• Patient-Centric Innovation: Advancing a diverse portfolio of small molecule product candidates with the potential to treat a wide range of tumors.
• Dual-Mechanism Approach: Developing therapies that combine both direct tumor-killing and immune-mediated (activating the body's defenses) mechanisms.
• Strategic Focus: Concentrating efforts on first-in-class and best-in-class therapies that address significant unmet medical needs in oncology.

Official mission statement

While Tempest Therapeutics, Inc. doesn't publish a single, formal mission statement, their consistent public communication defines their core purpose as a clinical-stage oncology company.

• Develop innovative, small molecule therapeutics to fight cancer.
• Significantly improve the lives of patients battling various forms of cancer.
• Advance novel oncology therapeutics that modulate the tumor microenvironment (TME) to enhance anti-tumor immunity.

Vision statement

The company's vision is clearly tied to becoming a leader in the oncology space through scientific validation and strategic execution. You can see this in their program development, especially the financially derisked programs.

• Become a leader in developing innovative cancer therapies through proprietary technology platforms.
• Maximize stockholder value and patient impact by advancing promising clinical-stage programs.
• Significantly improve patient outcomes through novel therapeutic approaches, like the NCI-funded Phase 2 trial for TPST-1495 in familial adenomatous polyposis (FAP).

Given Company slogan/tagline

The most concise description of their scientific focus, often used in their materials, acts as their operating slogan.

• Targeted and Immune-Mediated Cancer Therapies.

This focus on science is why the company's cash and equivalents were only $7.5 million at the end of Q3 2025, down from $30.3 million at the end of 2024. They are defintely burning cash to fund the science, which is the only way to realize the mission. For a deeper look at the financial risks and runway associated with this mission, check out Breaking Down Tempest Therapeutics, Inc. (TPST) Financial Health: Key Insights for Investors.

Tempest Therapeutics, Inc. (TPST) How It Works

Tempest Therapeutics, Inc. is a clinical-stage biotechnology company that works by developing novel, first-in-class small molecule therapies designed to fight cancer through a dual approach: directly targeting tumor cells and activating the patient's immune system to attack the tumor (immune-mediated therapeutics). The company's value creation currently hinges entirely on advancing its clinical pipeline and securing a strategic partner or financing to commercialize its lead assets.

Honestly, as of November 2025, the company reports no revenue, so its operational framework is focused purely on research, development, and strategic financial maneuvers, not commercial sales. Here's the quick math: the company's year-to-date net loss through Q3 2025 was $22.2 million, which tells you they are burning cash to push these drugs forward.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

Tempest's operational framework is a lean, outsourced model typical of a clinical-stage biotech, but it is currently dominated by a critical strategic process. They are actively exploring a full range of strategic alternatives-like mergers, acquisitions, or partnerships-to maximize stockholder value. This means the entire organization is currently aligned to either secure a large-scale partnership or be acquired.

• Capital-Constrained Development: Cash and cash equivalents stood at only $7.5 million as of September 30, 2025. This tight liquidity profile forces a re-prioritization of research and development (R&D) efforts, which is why R&D expenses dropped sharply to $0.6 million in Q3 2025 from $7.6 million in Q3 2024.
• Externalized Clinical Execution: They rely on contract research organizations (CROs) and manufacturing partners for clinical trial execution and drug supply, minimizing in-house fixed costs.
• Strategic Collaboration: They are leveraging non-dilutive funding and expertise through collaborations, such as the planned Phase 2 trial of TPST-1495 with the National Cancer Institute (NCI) and the Cancer Prevention Clinical Trials Network. This is a smart way to advance a program without burning their own defintely limited cash.

Given Company's Strategic Advantages

The company's primary strategic advantage lies in the clinical data and regulatory status of its lead candidate, amezalpat, and its ability to attract external funding/partnerships based on that data.

• Validated Mechanism in HCC: Amezalpat (TPST-1120) has shown compelling randomized Phase 2 data in first-line HCC (liver cancer), extending median overall survival by six months when added to standard-of-care therapy. This is a significant clinical signal in a hard-to-treat cancer.
• Regulatory Momentum: The program has received both FDA Fast Track and Orphan Drug designations for HCC. These designations expedite development and provide market exclusivity upon approval, which is a major draw for potential partners.
• Pipeline Diversification: The announced acquisition of the dual-CAR T program, TPST-2003, in November 2025, diversifies the pipeline beyond small molecules into the high-growth cell therapy space, which could extend their cash runway to mid-2027.
• Targeting the Tumor Microenvironment: Their small molecule platform focuses on modulating tumor metabolism and the immune system, a key area of next-generation immuno-oncology that aims to overcome resistance to existing checkpoint inhibitors.

For more on the foundational principles guiding their research, you can look at the Mission Statement, Vision, & Core Values of Tempest Therapeutics, Inc. (TPST).

Tempest Therapeutics, Inc. (TPST) How It Makes Money

Tempest Therapeutics, Inc. is a clinical-stage biotechnology company, meaning it currently generates no revenue from the sale of approved drug products or substantial licensing deals; its operations are funded almost entirely through capital raises and interest income from its cash reserves.

The company's core business model is built on developing and eventually commercializing a portfolio of novel, small-molecule oncology candidates, such as amezalpat (formerly TPST-1120) for hepatocellular carcinoma (HCC) and TPST-1495 for Familial Adenomatous Polyposis (FAP), but this revenue potential is years away, pending successful clinical trials and regulatory approval.

Tempest Therapeutics' Revenue Breakdown

As a pre-commercial business, Tempest Therapeutics' financial engine is not driven by product sales. For the 2025 fiscal year through the third quarter (Q3 2025), analysts forecast the company's product revenue to be $0. The only recognized income comes from investing its capital base.

Here's the quick math: For the nine months ended September 30, 2025, the company reported total interest and other income, net, of approximately $464 thousand. This is the entirety of its current operating income, representing 100% of the revenue line item. The trend for this small income stream is increasing as the Federal Reserve's rate environment has allowed companies to earn more on their cash holdings, but it is a negligible amount compared to their expenses.

Business Economics

The economics of Tempest Therapeutics are typical for a clinical-stage biotech: high burn rate, zero product revenue, and funding dependence on capital markets or strategic partnerships. The company's value is purely a function of its intellectual property (IP) and the clinical trial success of its drug pipeline.

• Pricing Strategy: The future pricing strategy for candidates like amezalpat, if approved, will be an ultra-premium model, common for novel oncology therapeutics, likely in the tens or hundreds of thousands of dollars per patient per year.
• Cost Structure: The primary cost is Research and Development (R&D), which has historically been the largest expense. However, in Q3 2025, R&D expenses were drastically reduced to $0.6 million from $7.6 million in the same period in 2024, reflecting a strategic re-prioritization and cost-cutting effort.
• Funding Runway: The company's cash position dictates its operational runway. As of September 30, 2025, cash and cash equivalents stood at $7.5 million. This is a critical metric; it tells you exactly how much time the company has left before it needs to raise more capital or execute a strategic transaction.

The entire business model is a high-stakes option: invest heavily in R&D now to generate a massive, high-margin revenue stream later, or run out of cash trying. They are defintely in a capital-intensive phase.

Tempest Therapeutics' Financial Performance

The company's financial health as of November 2025 shows a sharp focus on capital preservation while pursuing a strategic alternative process to maximize shareholder value.

• Net Loss: The year-to-date net loss through September 30, 2025, was $22.2 million. This is the true cost of running the business-your capital burn.
• Expense Reduction: The dramatic reduction in R&D spending in Q3 2025 to $0.6 million from $7.6 million in the prior year quarter shows management's aggressive move to conserve cash while exploring strategic options. General and Administrative (G&A) expenses remained stable at $3.0 million for the quarter.
• Capital Infusion: To offset the operational cash burn, the company successfully raised capital in 2025, including $4.1 million in net proceeds from a June registered direct offering and $2.8 million from an at-the-market (ATM) offering program.
• Strategic Expansion: A key recent action, announced in November 2025, is the plan to acquire dual-targeting CAR-T programs from Factor Bioscience. This all-stock transaction is projected to extend the company's operational runway through mid-2027, a significant extension of its financial lifeblood.

The financial story here is one of a company in a high-risk, high-reward phase, aggressively managing its cash to bridge to a potential value-creating event. You can dig deeper into the balance sheet and cash flow here: Breaking Down Tempest Therapeutics, Inc. (TPST) Financial Health: Key Insights for Investors

Tempest Therapeutics, Inc. (TPST) Market Position & Future Outlook

Tempest Therapeutics, Inc. is positioned as a high-risk, high-reward clinical-stage oncology company, currently focused on advancing its two lead, first-in-class small molecule candidates toward late-stage trials. The company's immediate future hinges on its success in securing a strategic transaction-a partnership, merger, or acquisition-to fund the pivotal Phase 3 trial for Amezalpat (TPST-1120) in liver cancer, which is a critical near-term catalyst.

Competitive Landscape

You need to be realistic about Tempest Therapeutics' competitive standing: as a clinical-stage biotech, its actual market share in the oncology drug market is 0% because it has no approved products and analysts forecast $0 in revenue for the full fiscal year 2025. To give you a sense of its relative size within the small-cap oncology peer group, we can look at market capitalization (the total value of its outstanding shares) as a proxy for standing. Tempest's market capitalization was approximately $46.7 million as of October 30, 2025.

Here's the quick math: the percentages above reflect the company's market cap as a portion of this small, three-company peer group's combined market cap (approx. $95.7 million), not the total oncology market. It's a nano-cap player, defintely.

Opportunities & Challenges

The company's primary opportunity is its clinical data, but its biggest challenge is capital. The strategic alternatives process, announced earlier in 2025, is a direct response to the need for substantial funding to move its pipeline forward.

Industry Position

Tempest Therapeutics is a classic example of a clinical-stage biotech that has successfully de-risked its science but not its finances. Its position rests on developing first-in-class small molecule therapeutics (drugs that can often be taken as pills) that modulate the tumor microenvironment (TME).

• First-in-Class Potential: Amezalpat (TPST-1120) is a first-in-class PPAR$\alpha$ antagonist, targeting a novel mechanism that reduces immunosuppression to help the immune system attack tumors.
• Validation through Collaboration: The company's lead program, Amezalpat, has advanced through a collaboration with Roche.
• Strategic Imperative: The current strategic alternatives process is not just a financial move; it is a necessary step to transition from a research-focused entity to a commercial-ready one, or to find a larger partner with the resources to run a global Phase 3 study.

The core value proposition is the six-month median overall survival benefit seen in the Phase 2 HCC data; that's a significant clinical signal in oncology, and it is the main reason a larger pharma company might be interested in a partnership or acquisition. You can read more about their foundational strategy in the Mission Statement, Vision, & Core Values of Tempest Therapeutics, Inc. (TPST).