Terns Pharmaceuticals, Inc. (TERN): Business Model Canvas [Dec-2025 Updated]

You're looking at a clinical-stage biotech that made a sharp turn, and honestly, when Terns Pharmaceuticals, Inc. (TERN) pivoted hard into oncology with TERN-701 for Chronic Myeloid Leukemia (CML), many analysts focused only on the science. But as a former BlackRock head, I see the financial scaffolding: they are running lean, banking on a $295.6 million cash pile as of September 30, 2025, giving them runway well into 2028. This model hinges on successfully advancing TERN-701 while using their older metabolic assets as bait for lucrative out-licensing deals with Big Pharma. It's a disciplined, high-stakes gamble balancing R&D spend-like the $19.9 million burned in Q3 2025-against future partnership cash. Dive into the full Business Model Canvas below to see exactly how Terns Pharmaceuticals, Inc. (TERN) is structuring its path to value creation.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Key Partnerships

You're looking at the structure Terns Pharmaceuticals, Inc. uses to get its pipeline candidates through development, and partnerships are central to managing their capital allocation, especially given their strategic pivot.

Large pharmaceutical companies for out-licensing metabolic assets (TERN-501, TERN-801)

Terns Pharmaceuticals is actively seeking partners for its metabolic portfolio, signaling a clear resource constraint or strategic choice to focus internal capital elsewhere. The company has stated it does not plan to invest in clinical development in metabolic disease beyond year-end 2025. This is a hard stop for internal funding on these programs. The metabolic assets up for partnering include TERN-501, the THR-β agonist candidate for MASH/NASH, and the TERN-800 series, which includes the GIPR antagonist development candidate, TERN-801. The rationale for seeking a partner for TERN-601, the oral GLP-1 receptor agonist, is grounded in the scale of investment required; analysts have noted that R&D costs for this asset could exceed $500 million, plus the need for a sales force capable of targeting general practitioners for commercialization.

Here's a quick look at the metabolic pipeline status relative to the partnering strategy:

Asset	Indication Focus	Development Status (as of late 2025)	Partnering Strategy
TERN-501	MASH/NASH	Phase 2 ready	Seeking out-license partner
TERN-801 (part of TERN-800 series)	Obesity (GIPR Antagonist)	Development candidate	Seeking out-license partner
TERN-601	Obesity (GLP-1RA)	Phase 2 (FALCON trial ongoing)	Seeking out-license partner due to high cost

Contract Research Organizations (CROs) for managing global clinical trials

While Terns Pharmaceuticals hasn't publicly named the specific CROs managing their global trials, the scale of their ongoing work dictates reliance on established, specialized organizations. The focus is heavily on advancing TERN-701 in the CARDINAL trial. This trial initiated the dose expansion portion in April 2025, with patients randomized into cohorts of up to 40 patients per arm. The dose escalation phase completed in January 2025. The operational complexity of running a global, multi-center trial like CARDINAL requires significant external support for site management, data collection, and regulatory adherence. The company's second quarter 2025 Research and Development (R&D) expenses were $20.4 million, a portion of which directly funds these CRO services.

Academic medical centers and key opinion leaders for TERN-701 clinical research

Partnerships with academic centers and key opinion leaders (KOLs) are critical for validating the clinical profile of TERN-701, especially in a competitive space like Chronic Myeloid Leukemia (CML). The data presented at the 67th American Society of Hematology (ASH) Annual Meeting on December 8, 2025, is a direct result of this collaborative research structure. As of the June 30th, 2025, cutoff, the CARDINAL trial had enrolled 55 patients. The dose escalation phase showed compelling molecular responses starting at the lowest dose, with the maximum dose tested being 500 mg QD, which showed no dose limiting toxicities (DLTs). Furthermore, TERN-701 has been granted Orphan Drug Designation by the United States Food and Drug Administration (FDA) for CML, a status often achieved through strong preclinical and early clinical data generated in collaboration with expert investigators.

Key data points from the TERN-701 CARDINAL trial as of the June 30th, 2025 cutoff:

• Dose escalation completed in January 2025.
• Maximum dose tested in escalation was 500 mg QD.
• Overall cumulative major molecular response (MMR) rate of 75% (24/32) by 24 weeks for efficacy-evaluable patients.
• 64% (14/22) achieved MMR at 24 weeks.
• Dose expansion started in April 2025 with two cohorts (320 mg or 500 mg QD).

Specialized manufacturing partners for small-molecule drug substance

Terns Pharmaceuticals, as a clinical-stage company, relies on specialized Contract Development and Manufacturing Organizations (CDMOs) for its small-molecule drug substance production. While specific CDMO names aren't public, the financial health of Terns dictates the scope of these agreements. The company's cash position as of June 30, 2025, stood at $315.4 million, which, combined with prior projections, provides a runway extending into 2028. This capital base supports the ongoing manufacturing scale-up necessary for late-stage trials and potential commercial launch preparations for TERN-701. The company also has a pre-existing licensing agreement where Hansoh holds development and commercialization rights for TERN-701 in mainland China, Taiwan, Hong Kong, and Macau, which likely involves a separate, pre-agreed manufacturing supply chain structure with that partner.

Financial context for supporting manufacturing and development:

• Cash, cash equivalents, and marketable securities as of June 30, 2025: $315.4 million.
• Projected cash runway extends into 2028.
• R&D Expenses for Q2 2025: $20.4 million.

Finance: draft Q3 2025 manufacturing spend forecast by next Tuesday.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Key Activities

You're managing a clinical-stage biotech that's making a sharp pivot, focusing resources heavily on one oncology asset while actively seeking external funding for its metabolic pipeline. The key activities reflect this strategic tightening as of late 2025.

Advancing TERN-701 (CML) through Phase 1 dose expansion and towards pivotal trials

The primary operational focus is driving TERN-701, the next-generation oral, allosteric BCR-ABL inhibitor, through the remainder of its Phase 1 CARDINAL trial. The dose escalation portion wrapped up in January 2025, showing no dose limiting toxicities (DLTs) even up to the maximum dose of 500 mg QD. So, in April 2025, Terns Pharmaceuticals initiated the dose expansion part of the study. This involves randomizing patients across two cohorts: 320 mg or 500 mg QD, with up to 40 patients per arm. The company is managing execution to report efficacy and safety data in the fourth quarter of 2025, specifically targeting the 6-month major molecular response (MMR) achievement rate, a key regulatory endpoint. Earlier interim data already showed a cumulative MMR rate of 50% at 3 months across the first two dose levels. Also, TERN-701's drug-drug interaction profile is cleaner than asciminib's, which is a big deal for patients on lifelong therapy.

Research and development (R&D) of novel small-molecule drug candidates

While the focus shifts, R&D spending reflects ongoing commitment to the pipeline, especially the oncology asset. You'll see the expense line increasing as the TERN-701 trial progresses into the expansion phase. The company is still actively developing novel small molecules, evidenced by the nomination of TERN-801, an oral small-molecule glucose-dependent insulinotropic polypeptide receptor (GIPR) antagonist, as a development candidate in the third quarter of 2025. Still, the internal investment in the metabolic pipeline is being capped; Terns Pharmaceuticals announced it will discontinue internal clinical development in metabolic disease beyond the end of 2025.

Here's a quick look at the recent R&D burn:

Metric	Q3 2025 Amount	Q3 2024 Amount
Research and Development (R&D) Expenses	$19.9 million	$15.2 million
Net Loss	$24.6 million	$21.9 million

Business development efforts to secure strategic partners for metabolic programs

A major activity is the active search for strategic partners to advance the metabolic portfolio, as Terns Pharmaceuticals does not plan to fund clinical development in this area past 2025. The assets being shopped include TERN-601 (obesity), TERN-501 (metabolic dysfunction-associated steatohepatitis or MASH), and the TERN-800 series. The TERN-601 program, an oral GLP-1 receptor agonist, is a key asset in this effort, with top-line 12-week data from its Phase 2 FALCON trial expected in the fourth quarter of 2025. That data will be crucial for attracting a partner capable of funding the required Phase 3 trials, which executives estimate could cost over $500 million. For context, the Q3 Phase 2 data showed a maximum placebo-adjusted weight loss of 4.6%, but also saw a 12% treatment discontinuation rate due to adverse events.

The metabolic assets Terns Pharmaceuticals is seeking partners for include:

• TERN-601: Oral GLP-1 receptor agonist for obesity.
• TERN-501: Oral thyroid hormone receptor-beta (THR-β) agonist.
• TERN-800 series: Focused on oral GIPR modulators.

Regulatory affairs and clinical trial execution management

Execution management is centered on hitting the Q4 2025 data release milestones for both lead programs while maintaining financial stability. The regulatory team is managing the path from the current Phase 1 expansion toward a pivotal trial for TERN-701. On the metabolic side, the execution team successfully initiated the Phase 2 FALCON trial for TERN-601 in early Q2 2025. Financially, the company is managing its burn rate to ensure runway. As of September 30, 2025, cash, cash equivalents, and marketable securities stood at $295.6 million. Honestly, that cash position is expected to support planned operating expenses into 2028, which is a solid runway given the strategic focus.

Here are the key financial metrics supporting operations:

Financial Metric	Value as of September 30, 2025
Cash, Cash Equivalents, and Marketable Securities	$295.6 million
Cash Runway Expectation	Into 2028
General and Administrative (G&A) Expenses (Q3 2025)	$7.8 million

Finance: draft 13-week cash view by Friday.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Key Resources

You're looking at the core assets Terns Pharmaceuticals, Inc. (TERN) is relying on right now to drive its strategy, especially as it pivots its focus. These aren't just line items; they are the tangible and intangible things that make their value proposition possible.

Intellectual Property (IP) portfolio covering TERN-701 and metabolic candidates

The IP centers around specific small-molecule candidates, with a clear prioritization shift toward oncology. The TERN-701 asset, an oral, potent allosteric BCR-ABL tyrosine kinase inhibitor (TKI) for chronic myeloid leukemia (CML), is the primary focus for internal development, aiming for a pivotal trial. Data from the ongoing CARDINAL trial, as of a June 30, 2025, cutoff, showed compelling activity for TERN-701:

• Overall (cumulative) major molecular response (MMR) rate of 75% (24 out of 32 efficacy-evaluable patients) by 24 weeks.
• 64% of patients (14 out of 22) achieved MMR.
• 100% maintenance of MMR (10 out of 10 patients).
• TERN-701 demonstrated an improved drug-drug interaction profile compared to asciminib.

The metabolic portfolio, which includes TERN-601 (an oral GLP-1 receptor agonist) and TERN-501 (a THR-β agonist), is being positioned for partnership, as Terns Pharmaceuticals does not plan to invest in clinical development in metabolic disease beyond year-end 2025. The TERN-800 series discovery effort resulted in the nomination of TERN-801, an oral small-molecule GIPR antagonist, as a development candidate in the third quarter of 2025. Top-line 12-week data for TERN-601 in October 2025 showed a maximum placebo-adjusted weight loss of 4.6%, with 12% treatment discontinuation due to adverse events.

Strong cash position of $295.6 million as of September 30, 2025

Financially, Terns Pharmaceuticals, Inc. maintains a solid foundation to execute its near-term oncology plan. As of September 30, 2025, the company held cash, cash equivalents, and marketable securities totaling $295.6 million. This figure represents a decrease from the $358.2 million reported on December 31, 2024. Honestly, this cash level is expected to be sufficient to support planned operating expenses into 2028. The Research and Development (R&D) expenses for the third quarter ended September 30, 2025, were $19.9 million. Here's the quick math on the burn: the net loss for that same quarter was $24.6 million. Still, the runway into 2028 is the key takeaway for near-term operational planning.

Financial Metric	Amount as of September 30, 2025	Comparison Date
Cash, Cash Equivalents, and Marketable Securities	$295.6 million	December 31, 2024: $358.2 million
R&D Expenses (Q3 2025)	$19.9 million	Q3 2024: $15.2 million
General and Administrative (G&A) Expenses (Q3 2025)	$7.8 million	Q3 2024: $9.8 million
Net Loss (Q3 2025)	$24.6 million	Q3 2024: $21.9 million

Highly specialized scientific and clinical development teams

The team's expertise is currently concentrated on advancing TERN-701 through a pivotal trial, which is a significant undertaking. The clinical development resource is actively managing the TERN-701 CARDINAL trial, which initiated dose expansion in April 2025 with patients randomized to 320 mg or 500 mg once daily cohorts. The scientific team is also responsible for the discovery and nomination of the TERN-801 development candidate from the TERN-800 series discovery effort in the third quarter of 2025. This specialized focus reflects the strategic decision to prioritize oncology execution over broader metabolic development.

Proprietary small-molecule drug discovery platform

Terns Pharmaceuticals, Inc. utilizes its proprietary platform to generate novel, oral small-molecule product candidates based on clinically validated mechanisms of action. This platform is the engine behind the pipeline, which includes TERN-701 and the metabolic candidates. The platform's output is evidenced by the progression of multiple assets, including the identification of TERN-701 as a potential best-in-class TKI targeting the ABL myristoyl pocket. Furthermore, the platform supported the TERN-800 series discovery effort, culminating in the nomination of TERN-801, a GIPR antagonist, in Q3 2025. The company is now seeking a strategic partner to advance this specific program.

• Platform focus: Novel, oral small-molecule product candidates.
• Validated mechanism application: Allosteric BCR-ABL inhibition (TERN-701).
• Discovery output: Nomination of TERN-801 (GIPR antagonist) in Q3 2025.
• Pipeline focus shift: Prioritizing oncology execution internally.

Finance: draft 13-week cash view by Friday.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Value Propositions

You're looking at the core value Terns Pharmaceuticals, Inc. (TERN) is putting forward right now, late in 2025. It's a dual focus: pushing a potential best-in-class oncology asset while strategically preparing to transition its metabolic pipeline to partners.

TERN-701: Potential best-in-class oral therapy for Chronic Myeloid Leukemia (CML)

The primary value driver here is TERN-701, the oral, allosteric BCR::ABL1 inhibitor. The data coming out of the CARDINAL trial is what's driving the narrative, especially for patients with refractory disease. We're seeing strong molecular responses that suggest a best-in-disease profile is achievable, which is a huge proposition in a market that is projected to grow from USD 8.86 billion in 2025 to USD 12.07 billion by 2030.

Here are the key efficacy numbers from the data presented as of late 2025:

Metric	Result	Context/Subgroup
Overall (cumulative) Major Molecular Response (MMR) Rate by 24 weeks	75% (24/32)	Efficacy-evaluable patients
Achieved MMR by 24 weeks	64% (14/22)	Efficacy-evaluable patients
MMR Maintenance by 24 weeks	100% (10/10)	Patients who achieved MMR
MMR by 24 weeks	69% (11/16)	Patients with lack of efficacy to last Tyrosine Kinase Inhibitor (TKI)
MMR by 24 weeks	60% (6/10)	Patients with prior asciminib treatment

The safety profile supports the convenience proposition of once-daily dosing. Dose escalation completed up to the maximum dose of 500 mg QD with no dose-limiting toxicities observed. The dose expansion portion, initiated in April 2025, is testing the 320 mg or 500 mg QD cohorts.

Oral, small-molecule alternatives to injectable obesity/metabolic treatments (for partners)

TERN-601 was positioned as a potential best-in-class oral GLP-1 receptor agonist for obesity, offering a differentiated, convenient alternative to injectables. However, the strategic value proposition has shifted to partnering, as Terns Pharmaceuticals will discontinue internal clinical development in metabolic disease beyond year-end 2025.

The initial Phase 1 data showed promise, but the Phase 2 results shifted the strategy:

• Placebo-adjusted weight loss in Phase 1 (highest dose, 740 mg QD): up to 5.5% over 28 days.
• Placebo-adjusted weight loss in Phase 2 at Week 12: up to 4.6% across four regimens.
• Internal expectation for TERN-601 weight loss was at least 6%.
• In the cohort with the highest weight loss in Phase 2, 64.7% of people reported nausea.

The value proposition now is to secure a partner to advance TERN-601, TERN-501 (THR-β agonist), and TERN-801 (GIPR antagonist) through later-stage development and commercialization, as internal R&D costs for these programs are deemed too high for the current focus.

Addressing high unmet needs in oncology and complex metabolic diseases

For oncology, the unmet need is clear: TERN-701 is targeting patients who have failed multiple prior lines of therapy, with enrolled patients having a median of 3 prior TKIs, and 64% having discontinued their last TKI due to lack of efficacy. The drug aims to improve upon the efficacy, safety, and convenience of existing treatments.

For metabolic diseases, the value proposition was the development of an oral small molecule to compete in a market where injectable therapies dominate, aiming for a better safety profile than rivals. The TERN-601 Phase 1 trial was able to dose up to 740 mg once-daily.

Disciplined capital management with cash runway into 2028

The company is executing a disciplined capital strategy, focusing resources on the oncology pipeline while seeking external support for metabolic assets. This focus is supported by a solid balance sheet.

Here's a look at the financial position as of late 2025:

Financial Metric	Amount (as of Sep 30, 2025)	Comparison (as of Dec 31, 2024)
Cash, Cash Equivalents, Marketable Securities	$295.6 million	$358.2 million
Cash Runway Expectation	Into 2028	Into 2028
Quarterly R&D Expenses	$19.9 million (Q3 2025)	$15.2 million (Q3 2024)
Quarterly G&A Expenses	$7.8 million (Q3 2025)	$9.8 million (Q3 2024)
Quarterly Net Loss	$24.6 million (Q3 2025)	$21.9 million (Q3 2024)

The expectation is that the current funds will support planned operating expenses into 2028.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Customer Relationships

You're looking at how Terns Pharmaceuticals, Inc. manages its critical external relationships as it sharpens its focus on TERN-701. The relationships are highly specialized, reflecting a clinical-stage biotech navigating late-stage development and strategic out-licensing.

High-touch, collaborative relationships with clinical investigators and trial sites

Terns Pharmaceuticals maintains close working ties with the investigators running its clinical trials, especially for the lead program, TERN-701, a novel investigational allosteric BCR::ABL1 inhibitor for chronic myeloid leukemia (CML). This high-touch approach is necessary to manage complex trial protocols and interpret nuanced data.

• The Phase 1 CARDINAL trial, evaluating TERN-701, had its dose escalation phase completed by the end of September 2025.
• The dose expansion phase of CARDINAL began in April 2025.
• Terns Pharmaceuticals is preparing for an oral presentation at the 67th ASH Annual Meeting and Exposition in November 2025 featuring an updated and expanded dataset from the ongoing CARDINAL trial.
• In 2024, Terns hosted educational webinars with leading Key Opinion Leaders (KOLs) in CML, indicating ongoing scientific engagement with the clinical community.

Direct, strategic engagement with potential large pharma partners for out-licensing

The strategy for the metabolic portfolio, following the decision to stop internal investment beyond year-end 2025, centers on securing external partners. This requires direct, strategic engagement to convey the value proposition of the remaining assets.

• Terns Pharmaceuticals seeks to partner its portfolio of potentially best-in-class metabolic assets.
• The company does not plan to invest in clinical development in metabolic disease beyond year end 2025.
• The TERN-800 series, a set of GIPR modulators for obesity, is actively being positioned for partnership advancement.
• The development of the oral GLP-1 obesity candidate, TERN-601, was shelved in October 2025 after data fell short of expectations, reinforcing the need to partner other metabolic assets.

Investor relations focused on communicating clinical milestones and financial prudence

Investor relations communication is centered on delivering precise clinical efficacy data for TERN-701 while transparently reporting the financial burn rate and cash runway. You see this balance in their Q3 2025 reporting.

Here's the quick math on the financial position as of September 30, 2025:

Financial Metric	Amount as of September 30, 2025
Cash and Cash Equivalents	$295.6 million
Total Assets	$301.6 million
Total Liabilities	$17.58 million
Net Loss (Q3 2025)	$24.6 million
Research and Development Expenses (Q3 2025)	$19.91 million
General and Administrative Expenses (Q3 2025)	$7.8 million

The communication emphasizes the strength of the lead program alongside the financial runway. The stock was quoted recently at $27.49 in mid-November 2025.

Key clinical milestones communicated to investors include:

Program/Metric	Data Point (as of late 2025 reporting)
TERN-701 Overall MMR by 24 Weeks (Cumulative)	75%
TERN-701 MMR by 24 Weeks (Prior asciminib/ponatinib/investigational TKI patients)	67%
TERN-601 Placebo-Adjusted Weight Loss (Week 12)	Up to 4.6%
TERN-601 Treatment Discontinuation Rate (Adverse Event)	11.9%

The company reports that its cash position is expected to provide runway into 2028, a critical point for reassuring stakeholders about execution capability.

Patient advocacy groups for CML and obesity awareness

While specific 2025 engagement numbers with advocacy groups aren't detailed, Terns Pharmaceuticals has a history of engagement related to its focus areas, CML and obesity. This is a necessary part of building a patient-centric profile for a drug like TERN-701, which aims to be a best-in-disease treatment for CML.

• Terns has a stated commitment to patients.
• The company previously hosted educational webinars with KOLs in obesity in 2024.
• The focus has shifted to TERN-701, aiming to bring a potential best-in-class therapy to people living with CML.

Finance: draft 13-week cash view by Friday.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Channels

You're looking at how Terns Pharmaceuticals, Inc. gets its science and its financial story out to the world, and how it manages the actual drug delivery. It's all about communication and execution across different fronts, especially now that the focus is sharply on TERN-701.

Scientific publications and medical conferences (e.g., ASH) to disseminate TERN-701 data

Dissemination of clinical data is a primary channel for Terns Pharmaceuticals, Inc. to validate its science and attract potential partners. The 67th American Society of Hematology (ASH) Annual Meeting and Exposition, held on December 8, 2025, was a key venue for this. The data presented was from the ongoing CARDINAL trial (NCT06163430), a global multi-center study for TERN-701 in previously treated chronic myeloid leukemia (CML) patients. The abstract available ahead of the presentation summarized data with a cutoff date of June 30, 2025. The company also used an Investor Educational Webinar on September 3, 2025, to discuss early CML data. The latest corporate presentation was issued on November 10, 2025.

Here are the key efficacy metrics shared regarding TERN-701 from the ASH abstract:

Metric	Value	Context/Denominator
Patients Enrolled (as of 6/30/2025)	55	Total in CARDINAL trial
Efficacy-Evaluable Patients	32	Total in efficacy analysis
Overall (cumulative) Major Molecular Response (MMR) Rate by 24 Weeks	75%	Of 32 efficacy-evaluable patients
New MMR Achieved by 24 Weeks	64%	Of 22 patients assessed for new response
MMR Maintenance by 24 Weeks	100%	Of 10 patients assessed for maintenance
MMR in Patients with Lack of Efficacy to Last TKI	69%	Of 16 patients in this subgroup
Patients Remaining on Treatment at Data Cutoff	87%	48 out of 55 patients
Median Prior Tyrosine Kinase Inhibitors (TKIs)	3	For enrolled patients

The safety profile channel showed that the majority (74%) of treatment-emergent adverse events (TEAEs) were low grade. The most common TEAEs reported were diarrhea (22%), headache (18%), and nausea (16%), all Grade 1 or 2. No dose-limiting toxicities were observed during dose escalation, and no maximum tolerated dose was reached.

Direct business development outreach to potential pharmaceutical partners

Terns Pharmaceuticals, Inc. is actively using its pipeline status to engage potential partners, specifically to offload its metabolic assets. The company has stated it seeks to partner its portfolio of potentially best-in-class metabolic assets and does not plan to invest in clinical development in metabolic disease beyond year-end 2025. This creates a clear channel for deal-making in the near term. The TERN-800 series, which includes GIPR modulators, is explicitly mentioned as a program where the company is seeking partners for advancement.

The focus on TERN-701 means the company believes it can take this CML candidate through a pivotal trial without external support, but the metabolic assets require partner resources, especially considering R&D costs for TERN-601 could exceed $500 million.

Investor presentations and financial reports to capital markets

The financial health and corporate narrative are communicated through regular filings and targeted conference appearances. The Q3 2025 financial results were released on November 10, 2025. These reports are crucial for maintaining market confidence, especially given the company is pre-revenue and operating at a loss.

Key financial figures from the Q3 2025 report (as of September 30, 2025) are:

• Cash, cash equivalents, and marketable securities: $295.6 million.
• Cash position as of December 31, 2024: $358.2 million.
• Net Loss for the quarter ended September 30, 2025: $24.6 million.
• Research and Development (R&D) Expenses for Q3 2025: $19.9 million.
• General and Administrative (G&A) Expenses for Q3 2025: $7.8 million.
• Total Assets as of September 30, 2025: $301.6 million.
• Total Liabilities as of September 30, 2025: $17.58 million.

Management actively uses investor conferences to present this information. Senior management presented at the Jefferies Global Healthcare Conference in London on November 17, 2025, and the Morgan Stanley 23rd Annual Global Healthcare Conference on September 10, 2025. The company also presented at the Goldman Sachs 46th Annual Global Healthcare Conference on June 9, 2025.

The current cash position of $295.6 million is expected to provide runway into 2028 based on the current operating plan.

Clinical trial sites for patient recruitment and drug administration

Clinical trial sites are the physical channel for drug administration and data collection for TERN-701. The CARDINAL trial is a global multi-center study. The dose expansion portion, which began in April 2025, involved randomization into two cohorts. You need to know the structure of that recruitment effort.

The structure for the dose expansion phase of the CARDINAL trial included:

• Dose cohorts: 320 mg or 500 mg once daily (QD).
• Patient allocation per arm: Up to 40 patients per arm.

The dose escalation portion of the trial was completed in January 2025 with no dose-limiting toxicities observed up to the maximum dose of 500 mg QD.

Finance: review Q4 2025 cash burn projections against the 2028 runway estimate by end of next week.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Customer Segments

You're looking at the key groups Terns Pharmaceuticals, Inc. (TERN) targets with its current pipeline focus, which is heavily weighted toward oncology as of late 2025. Honestly, the strategy shift is clear: they are laser-focused on their lead CML asset and looking to offload the rest.

Oncology patients with Chronic Myeloid Leukemia (CML), particularly second-line plus

This group represents the primary patient population for TERN-701, their allosteric BCR-ABL inhibitor currently in the Phase 1 CARDINAL trial for relapsed/refractory CML. The clinical data they presented in November 2025 at the 67th ASH Annual Meeting and Exposition gives us a concrete look at the potential efficacy for these patients.

Here's the quick math on the TERN-701 data:

Metric	Value
Overall (cumulative) Major Molecular Response (MMR) Rate by 24 Weeks	75%
Patients Achieving MMR by 24 Weeks	64%
MMR Maintenance Rate by 24 Weeks	100%
MMR by 24 Weeks in Patients with Lack of Efficacy to Last TKI	69%
MMR by 24 Weeks in Patients with Prior Asciminib	60%

The overall Chronic Myeloid Leukemia treatment market across the 7 major markets (US, EU4, UK, and Japan) was valued at USD 5.7 Billion in 2024. Looking ahead, this market is projected to reach USD 9.2 Billion by 2035, growing at a Compound Annual Growth Rate (CAGR) of 4.47% during the 2025-2035 period. Terns Pharmaceuticals, Inc. is clearly aiming for a significant share of the second-line plus segment, which is where patients have failed prior tyrosine kinase inhibitor (TKI) therapies.

Large pharmaceutical companies seeking late-stage metabolic disease assets

Terns Pharmaceuticals, Inc. has explicitly stated its intent to partner its metabolic assets, as they do not plan to invest in clinical development in metabolic disease beyond year end 2025. This makes large pharma companies looking to acquire late-stage, de-risked assets a key customer segment for deal-making.

The pipeline segment they are looking to partner includes TERN-601, an oral GLP-1 receptor agonist. However, the Phase 2 study results were not compelling enough to support continued internal development, showing a maximum placebo-adjusted weight loss of 4.6%.

• Metabolic Asset Focus: Portfolio of potentially best-in-class metabolic assets.
• Development Stance: No plan to invest in clinical development beyond 2025.
• Key Asset Readout: TERN-601 Phase 2 data showed 4.6% max placebo-adjusted weight loss.

Clinical investigators and oncologists specializing in hematology

These are the medical professionals who enroll patients and administer TERN-701 in the ongoing CARDINAL trial. Their buy-in is essential for trial execution and eventual adoption of the therapy.

The trial activity itself provides the numbers here:

• The Phase 1 CARDINAL trial for TERN-701 is ongoing, with dose expansion initiated in April 2025.
• Updated data, including 6-month MMR rates, were selected for oral presentation at the November 2025 ASH Annual Meeting.
• The company hosted a TERN-701-focused educational webinar in September 2025.

Financial investors focused on high-growth, clinical-stage biotech

This segment includes institutional holders and analysts who provide the capital and valuation framework for Terns Pharmaceuticals, Inc. As of September 30, 2025, the company reported a cash position of $295.6 million in cash, cash equivalents, and marketable securities. This balance is expected to provide a runway into 2028.

The ownership structure shows a strong institutional focus:

Investor Type	Metric/Data Point
Total Investors	8
Institutional Investors	8
Hedge Funds/Institutional Ownership Percentage	98.26%
Cash Runway into	2028
Cash, Cash Equivalents, Marketable Securities (as of 9/30/2025)	$295.6 million
Average Analyst Price Target (Recent)	$31.44

Key institutional investors mentioned include Deerfield and Orbimed, with Deerfield leading the Series C round for $97.7 million in January 2021. Franklin Resources Inc. acquired a stake valued at approximately $4,765,000 in the second quarter of 2025.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Cost Structure

You're looking at the operating costs for Terns Pharmaceuticals, Inc. as of late 2025. The primary drivers here are the heavy investment in the oncology pipeline, specifically TERN-701, and the winding down of metabolic programs.

The core of the cost structure is dominated by Research & Development (R&D) spending. For the third quarter ended September 30, 2025, Terns Pharmaceuticals reported R&D expenses of $19.9 million. This is a notable increase from the $15.2 million reported for the same period in 2024. That's where the money goes to run those clinical trials.

This R&D spend directly reflects the costs associated with advancing TERN-701 through the CARDINAL trial, which was in dose expansion in Q3 2025. It also includes the costs associated with the wind-down of the TERN-601 program for obesity, following the October 2025 announcement that Terns would no longer invest in its development internally beyond year-end 2025. The company is actively seeking external partnerships for its metabolic assets.

Here's a quick look at how the main operating expenses stacked up for the quarter:

Expense Category	Q3 2025 Amount	Q3 2024 Amount
Research & Development (R&D)	$19.9 million	$15.2 million
General and Administrative (G&A)	$7.8 million	$9.8 million
Net Loss	$24.6 million	$21.9 million

General and Administrative (G&A) expenses were $7.8 million for the third quarter of 2025. This is actually down from the $9.8 million seen in Q3 2024, suggesting some efficiency gains or timing differences in corporate overhead.

Personnel costs are a major component embedded within both R&D and G&A. You defintely have to factor in the cost of specialized scientific talent needed to manage complex oncology trials like TERN-701, plus the executive team steering the strategic pivot toward oncology focus and away from internal metabolic development.

The strategic shift means future cost structures will likely see:

• Sustained high R&D for TERN-701 advancement.
• Decreased R&D related to TERN-601 wind-down post-2025.
• Potential future G&A changes based on partnership activities.

Financially, Terns Pharmaceuticals maintained a strong cash position as of September 30, 2025, with cash, cash equivalents, and marketable securities at $295.6 million. Based on the current operating plan, this provides an expected cash runway extending into 2028. Finance: draft 13-week cash view by Friday.

Terns Pharmaceuticals, Inc. (TERN) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Terns Pharmaceuticals, Inc. as of late 2025. For a clinical-stage company, these are almost entirely non-product related right now, leaning heavily on the balance sheet and potential future deals.

Interest income generated from the large cash and marketable securities balance

Terns Pharmaceuticals, Inc. maintains a significant cash position, which generates interest income while funding operations. As of September 30, 2025, cash, cash equivalents and marketable securities totaled $295.6 million. This balance is expected to support planned operating expenses into 2028.

The interest income for the third quarter ended September 30, 2025, was $3,141 thousand. This stream helps offset the net loss, which was $24.6 million for that same quarter.

Period Ended	Interest Income (in thousands)	Cash, Cash Equivalents and Marketable Securities (at period end, in millions)
March 31, 2025	$3,643	$334.3
June 30, 2025	$3,350	$315.4
September 30, 2025	$3,141	$295.6

The cumulative interest income for the nine months ended September 30, 2025, reached $10,134 thousand.

Potential upfront payments and milestones from new metabolic asset licensing deals

Terns Pharmaceuticals, Inc. has explicitly stated its strategy regarding its metabolic assets. The company seeks to partner its portfolio of potentially best-in-class metabolic assets. This is coupled with the decision to not plan to invest in clinical development in metabolic disease beyond year end 2025. The potential revenue from these deals would materialize as upfront payments and future milestone achievements upon successful partnership and subsequent development progress of assets like TERN-601 and TERN-501. No specific upfront payment amounts from new deals are reported as of late 2025. The company is focusing internal resources on TERN-701.

Future product sales (currently zero) from TERN-701 if regulatory approval is achieved

As of late 2025, Terns Pharmaceuticals, Inc. has zero revenue from product sales. The lead oncology candidate, TERN-701 for chronic myeloid leukemia (CML), is currently in Phase 1/Phase 2 of the CARDINAL trial. The company is advancing TERN-701 towards a pivotal trial. The CML market itself was valued at $8.86 billion in 2025.

The potential revenue stream from TERN-701 sales is contingent upon achieving regulatory approval following positive data readouts, such as the 6-month Major Molecular Response (MMR) data expected in the fourth quarter of 2025.

Equity financing rounds to fund R&D (historical source)

Historically, Terns Pharmaceuticals, Inc. has relied on equity financing to fund its extensive Research and Development (R&D) expenses, which totaled $19.9 million for the third quarter of 2025. The company has raised a total of $208 million over 3 funding rounds historically. The largest of these was a Series C round for $97.7 million in January 2021.

The current funding mechanism is the existing cash balance, which provides runway into 2028. The company reported a net cash outflow from operating activities of $19.77 million in Q3 2025.

• Total historical funding raised: $208M.
• Largest historical financing round: Series C, $97.7M in January 2021.
• Current cash runway estimate: Into 2028.

Finance: draft 13-week cash view by Friday.