Terns Pharmaceuticals Reports $88.85 Million Net Loss for 2024, Advances Drug Candidates

Terns Pharmaceuticals, Inc. reported a net loss of $88.85 million for the year ended December 31, 2024, compared to a net loss of $90.21 million in 2023. Total operating expenses for 2024 were $101.87 million, a slight decrease from $102.56 million in 2023. The company attributed the decrease in general and administrative expenses to a $7.6 million reduction in personnel-related expenses, partially offset by increased professional services consulting costs. Research and development expenses increased by $6.61 million, primarily due to higher personnel costs and increased clinical and pre-clinical program expenses. The company reported no revenue from product sales for either period.

Significant changes in personnel occurred during the reporting period. Bryan Yoon, former chief operating officer and general counsel, and Mark Vignola, Ph.D., former chief financial officer, received retention awards totaling $1.2 million. Subsequently, the company recognized expenses related to their departures, including severance and accelerated vesting of equity awards. Erin Quirk, M.D., former president and head of research & development, also departed, resulting in additional expenses. Senthil Sundaram, former chief executive officer, also left the company during 2023, resulting in significant expenses related to his departure. As of December 31, 2024, Terns had 59 full-time employees.

The company is advancing several drug candidates. TERN-701, an allosteric BCR-ABL tyrosine kinase inhibitor for chronic myeloid leukemia (CML), showed positive early Phase 1 data, with compelling molecular responses and an encouraging safety profile. TERN-601, a small-molecule GLP-1 receptor agonist for obesity, demonstrated weight loss up to 5.5% in a Phase 1 trial. The Phase 2 FALCON trial for TERN-601 commenced in March 2025. TERN-501, a THR-β agonist, had its development for MASH limited due to regulatory and clinical development requirements, though the company continues to evaluate other opportunities for the drug. The company is also pursuing discovery efforts for the TERN-800 series of GIPR modulators for obesity.

The company's financial position as of December 31, 2024, included $161.44 million in cash and cash equivalents and $196.73 million in marketable securities. The company raised significant capital through various securities offerings during the reporting period, totaling $304.4 million. The company expects its existing cash resources to fund operations into 2028. However, the company anticipates continued significant losses and will require substantial additional funding to support its operations and achieve its goals. The company's future funding requirements will depend on various factors, including the progress and costs of its research and development programs and the timing of regulatory approvals.

The company's 10-K filing includes extensive discussion of various risks, including those related to its limited operating history, dependence on successful product development and regulatory approvals, reliance on third-party manufacturers and collaborators, competition, intellectual property protection, and compliance with complex regulations. The filing also notes the uncertainties associated with the evolving regulatory landscape in the United States and the European Union, as well as the potential impact of changes in healthcare policies and international trade relations, particularly those involving China. The company does not currently intend to pay dividends on its common stock.