Terns Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company focused on developing small-molecule product candidates for oncology and obesity, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company had 84,938,855 shares of common stock outstanding, with a par value of $0.0001.

As of September 30, 2024, Terns had cash and cash equivalents totaling $270.1 million, a substantial increase from $79.9 million at the end of 2023. Total current assets rose to $376.5 million from $267.4 million, while total assets increased to $378.2 million from $268.5 million. The company’s additional paid-in capital also saw a rise, reaching $764.0 million compared to $588.0 million at the end of 2023. Total stockholders’ equity improved to $364.5 million from $255.4 million.

Operating expenses for the three months ended September 30, 2024, were $24.9 million, down from $33.2 million in the same period of 2023. For the nine-month period, operating expenses decreased to $75.9 million from $78.5 million. The net loss for the third quarter was $(21.9 million), an improvement from $(29.8 million) in the prior year, while the nine-month net loss narrowed to $(67.1 million) from $(69.2 million). The net loss per share for the third quarter was $(0.28), compared to $(0.42) in 2023.

The company reported a net cash used in operating activities of $(55.4 million) for the nine months ended September 30, 2024, compared to $(48.1 million) in the same period of 2023. However, net cash provided by financing activities surged to $163.7 million, significantly higher than $28.1 million in the previous year, primarily due to the issuance of common stock and pre-funded warrants.

In September 2024, Terns completed a public offering, issuing 14,064,048 shares at $10.50 per share, generating net proceeds of $161.9 million. The company has not generated revenue from product sales and does not anticipate doing so in the near future, although potential revenue may arise from clinical and regulatory milestones related to its licensing agreements.

Research and development expenses increased for the nine months ended September 30, 2024, driven by higher personnel-related costs and clinical program expenses. The company continues to focus on its key product candidates, including TERN-701, TERN-601, and TERN-501, with ongoing clinical trials and regulatory activities.