FOSTER CITY, Calif. - Terns Pharmaceuticals, Inc. (NASDAQ:TERN), a biopharmaceutical company focused on developing treatments for oncology and obesity, announced today its intention to raise $125 million through a public offering of common stock and pre-funded warrants. The company also plans to offer underwriters a 30-day option to purchase additional shares valued at up to $18.75 million.
The securities, to be offered by Terns, are part of an underwritten public offering, pending market conditions. There is no guarantee of the offering's completion or its terms. Investment banks Jefferies and TD Cowen are leading the offering, with UBS Investment Bank also participating as a bookrunner.
The proceeds from this offering are earmarked for research and development of Terns' key product candidates, including TERN-701 and TERN-601, as well as other programs such as the TERN-800 series. The funds will also support general corporate purposes and working capital.
Terns' portfolio includes several clinical-stage development programs, such as an allosteric BCR-ABL inhibitor and a small-molecule GLP-1 receptor agonist, among others.
The offering is being made by way of a shelf registration statement filed with the Securities and Exchange Commission (SEC) on February 1, 2023, and declared effective on February 10, 2023. Prospective investors will be able to access the preliminary prospectus supplement and accompanying prospectus through the SEC's website or directly from the managing banks.
The announcement carries the customary disclaimer that the press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, and sales will not be conducted in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
This news is based on a press release statement from Terns Pharmaceuticals.
In other recent news, Terns Pharmaceuticals has revealed positive results from its Phase 1 trial for TERN-601, a potential obesity treatment. The company also reported strong earnings and revenue results, with TD Cowen and Mizuho Securities maintaining positive ratings on the company's shares. Terns Pharmaceuticals has also announced the appointment of Elona Kogan as its new chief legal officer, a move that bolsters the company's strategic development.
The company has secured the extension of its office lease in Foster City, California, through 2027, demonstrating its operational stability. In terms of clinical trials, Terns has made progress in its ongoing Phase 1 study of TERN-701, with interim findings suggesting the drug can be administered once daily with or without food.
The company is eagerly awaiting the interim Phase 1/2 CARDINAL study data for chronic myeloid leukemia (CML), expected in 2025. Analysts note the potential convenience of the once-daily dosing of the company's treatment, which does not require food intake. These are among the recent developments at Terns Pharmaceuticals.
InvestingPro Insights
As Terns Pharmaceuticals, Inc. (NASDAQ:TERN) moves forward with its public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro, TERN holds more cash than debt on its balance sheet, which could provide some assurance to investors regarding the company's liquidity amidst its fundraising efforts. Additionally, TERN's liquid assets surpass its short-term obligations, further highlighting its potential to manage near-term financial commitments.
Analyzing the market performance, TERN has experienced a strong return over the last month, with an 18.69% price total return. This uptick in stock price could reflect a growing investor confidence in the company's prospects, coinciding with the timing of the public offering. However, it's worth noting that analysts do not anticipate the company to be profitable this year, as reflected by the negative P/E ratio of -7.18, which investors should consider when evaluating the offering's potential.
InvestingPro also provides additional insights into Terns Pharmaceuticals, including more InvestingPro Tips and real-time data metrics. For a deeper dive into TERN's financials and market performance, investors can explore a total of 9 InvestingPro Tips on the platform.
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