Terns Stock Surges 300% in One Year — What a New $43 Million Position Signals for Investors
Key Points
New York City-based Commodore Capital initiated a stake of 5.7 million shares of Terns Pharmaceuticals in the third quarter, an increase of $42.8 million in position value.
The new position represents 2.1% of 13F reportable assets under management (AUM).
This new stake places Terns outside the fund's top five holdings.
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New York City-based Commodore Capital established a new position in Terns Pharmaceuticals (NASDAQ:TERN) in the third quarter, acquiring 5.7 million shares valued at approximately $42.8 million, according to a November 14 SEC filing.
What Happened
According to a filing with the Securities and Exchange Commission dated November 14, Commodore Capital initiated a new position in Terns Pharmaceuticals (NASDAQ:TERN) during the third quarter. The fund reported owning 5.7 million shares valued at $42.8 million as of September 30. The trade accounted for 2.1% of the fund’s $2 billion in reportable U.S. equity holdings.
What Else to Know
The new stake in Terns Pharmaceuticals represents 2.1% of Commodore's reportable AUM, placing it outside the fund’s top five holdings.
Top holdings after the filing include:
- NASDAQ:MRUS: $331.9 million (16.2% of AUM)
- NASDAQ:NUVL: $121.1 million (5.9% of AUM)
- NASDAQ:XENE: $108.4 million (5.3% of AUM)
- NASDAQ:COGT: $104.1 million (5.1% of AUM)
- NASDAQ:ELVN: $96.1 million (4.7% of AUM)
As of Tuesday, shares of Terns Pharmaceuticals were priced at $25.79, up 319% over the past year and well outperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market capitalization | $2.3 billion |
| Price (as of market close Tuesday) | $25.79 |
| Net income (TTM) | ($94.4 million) |
Company Snapshot
- Terns Pharmaceuticals develops small-molecule therapeutics for non-alcoholic steatohepatitis (NASH) and obesity, including candidates such as TERN-101, TERN-201, TERN-501, and TERN-601, all in various phases of clinical trials.
- The company operates a clinical-stage biopharmaceutical business model, with the potential to generate revenue in the future through commercialization or licensing of proprietary drug candidates.
- It targets healthcare providers, pharmaceutical partners, and patients affected by metabolic diseases, with a focus on NASH and obesity populations.
Terns Pharmaceuticals is a clinical-stage biotechnology company focused on developing innovative therapies for metabolic diseases such as NASH and obesity. The company leverages a pipeline of differentiated small-molecule drug candidates with advanced liver-targeted mechanisms and metabolic stability.
Foolish Take
Terns Pharmaceuticals just reported positive early efficacy for its lead oncology program and is heading into an American Society of Hematology presentation that could move the stock further on Monday.
Commodore initiated a new stake in Terns Pharmaceuticals during the third quarter, acquiring 5.7 million shares valued at $42.8 million as of September 30, according to a November 14 SEC filing. The position represents 2.1% of the fund’s $2 billion in reportable U.S. equity holdings—meaningful, but still below its top weightings.
The timing aligns with Terns’ release of unprecedented Phase 1 efficacy data for TERN-701: a 75% cumulative major molecular response rate by 24 weeks, with strong responses even in difficult-to-treat patients. Safety remained encouraging, with no dose-limiting toxicities and the majority of adverse events low grade. The stock has skyrocketed more than 200% since the results. The full dataset will be presented at ASH next week.
In its latest earnings update, the company ended the third quarter with $295.6 million in cash, extending its runway into 2028. Ultimately, this is a high-volatility name, but early data strength plus deep cash reserves give Terns a clearer path than it had before—and there's a potential catalyst in the near-term horizon.
Glossary
13F reportable assets under management (AUM): The total value of U.S. equity securities a fund must disclose quarterly to the SEC.
Position: The amount of a particular security or asset held by an investor or fund.
Initiated a stake: When an investor or fund acquires shares of a company for the first time.
Top holdings: The largest investments in a fund's portfolio, usually ranked by value.
Clinical-stage biopharmaceutical: A company developing drugs that are still being tested in human clinical trials and not yet approved for sale.
Small-molecule therapeutics: Medications made from low molecular weight compounds, often taken orally, designed to treat diseases.
Non-alcoholic steatohepatitis (NASH): A liver disease characterized by fat buildup and inflammation, not caused by alcohol use.
Pipeline: The collection of drug candidates a pharmaceutical company is developing at various stages.
Commercialization: The process of bringing a new product or drug to market for sale.
Licensing: Granting rights to another company to develop, manufacture, or sell a product in exchange for payments.
Reportable U.S. equity holdings: U.S. stocks and related securities that investment funds must disclose in regulatory filings.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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