Terns Pharmaceuticals Reports $48M Net Loss for First Half of 2025

Terns Pharmaceuticals, Inc. reported a net loss of $48.0 million for the six months ended June 30, 2025, compared to a net loss of $45.1 million for the same period in 2024. The company's total operating expenses increased to $54.8 million from $51.0 million year-over-year, driven primarily by a rise in research and development costs, which rose to $39.1 million from $36.9 million. General and administrative expenses also saw an increase, totaling $15.7 million compared to $14.0 million in the prior year. The company’s interest income improved to $7.0 million, up from $6.1 million, reflecting higher cash and marketable securities balances.

In terms of financial position, Terns reported total assets of $320.4 million as of June 30, 2025, down from $363.9 million at the end of 2024. The decrease was largely attributed to a reduction in cash and cash equivalents, which fell to $146.0 million from $161.4 million. Marketable securities also declined to $169.5 million from $196.7 million. The company’s accumulated deficit increased to approximately $469.5 million, reflecting ongoing operational losses.

Strategically, Terns has been advancing its clinical programs, particularly TERN-701, a treatment for chronic myeloid leukemia, which is currently in a Phase 1 clinical trial. The company has also been developing TERN-601, a GLP-1 receptor agonist for obesity, with positive results reported from its Phase 1 study. Terns is focusing its resources on these lead programs while exploring potential collaborations for TERN-601, as it does not intend to advance this program independently beyond the current stage due to the anticipated costs and time involved.

Operationally, Terns has seen a significant increase in its research and development expenses, particularly for TERN-701 and TERN-601, which accounted for $10.4 million and $12.0 million in external expenses, respectively, for the six months ended June 30, 2025. The company’s employee headcount remains stable, with ongoing efforts to manage costs effectively. Terns has also maintained its commitment to exploring strategic partnerships to enhance its market position and expand its product offerings.

Looking ahead, Terns Pharmaceuticals anticipates continued net operating losses as it progresses through clinical trials and seeks to bring its product candidates to market. The company believes its existing cash and cash equivalents will be sufficient to fund operations into 2028, but acknowledges the need for additional funding to support ongoing research and development activities. Terns is actively considering various financing options, including equity offerings and collaborations, to secure the necessary capital for its future endeavors.