Terns Pharmaceuticals Reports $23.9 Million Net Loss in Q1 2025

Terns Pharmaceuticals, Inc. reported a net loss of $23.9 million for the first quarter of 2025, compared to a net loss of $22.4 million for the same period in 2024, reflecting an increase of approximately 6.8%. The company's total operating expenses rose to $27.4 million, up from $25.4 million year-over-year, primarily driven by a $1.8 million increase in general and administrative expenses, which totaled $8.7 million. Research and development expenses remained relatively stable, increasing slightly to $18.7 million from $18.6 million. The company’s interest income also saw a rise, reaching $3.6 million, compared to $3.2 million in the prior year, attributed to higher cash and marketable securities balances.

In terms of financial position, Terns reported cash and cash equivalents of $139.0 million as of March 31, 2025, down from $161.4 million at the end of 2024. Marketable securities were valued at $195.2 million, slightly decreasing from $196.7 million. The total assets of the company decreased to $339.3 million from $363.9 million, while total liabilities also fell to $13.3 million from $18.1 million. The company’s accumulated deficit increased to $445.4 million, reflecting ongoing investment in its clinical programs.

Strategically, Terns has been advancing its clinical pipeline, focusing on several product candidates including TERN-701, TERN-601, and TERN-501. The company is currently conducting clinical trials for these candidates, with TERN-701 showing promising early data in treating chronic myeloid leukemia. The first patient was enrolled in the expansion phase of the TERN-701 study in April 2025, with additional data expected in the fourth quarter of 2025. TERN-601, aimed at obesity treatment, has also shown positive results in early trials, with the first patient in the Phase 2 trial enrolled in March 2025.

Operationally, Terns has maintained a focus on its research and development efforts, with total research expenses reflecting a slight increase in clinical program costs. The company continues to explore opportunities for geographic expansion and product adoption, particularly in the Chinese market, where it has established collaborations. As of May 2, 2025, Terns had 87,337,801 shares of common stock outstanding, and it remains committed to advancing its clinical programs while managing its financial resources prudently. The company anticipates needing additional funding to support its ongoing operations and development activities, projecting that its existing cash and equivalents will sustain operations into 2028.