Terns Pharmaceuticals (TERN) Surges 3.52% on Strategic Oncology Shift as TERN-601 Discontinued After Subpar Phase 2 Data

The share price rose to its highest level so far this month, with an intraday gain of 8.18%.

Terns Pharmaceuticals (TERN) has seen its stock climb 3.52% in today’s session, marking an eight-day winning streak with a cumulative 138.40% rise. The rally follows a strategic shift to oncology and the discontinuation of its GLP-1 obesity drug, TERN-601, after Phase 2 results showed suboptimal efficacy and safety concerns. The company has pivoted to external partnerships for metabolic disease programs, redirecting focus to oncology while seeking collaborators for assets like TERN-501 and TERN-801. This realignment, though reducing near-term R&D costs, introduces uncertainty over deal terms and asset control.

Financial pressures persist, with cash reserves declining to $295.6 million as of September 2025. A Q3 GAAP loss of $0.27 per share underscores ongoing capital demands. The market reaction to TERN-601’s discontinuation and safety risks—including grade 3 liver enzyme elevations in three trial participants—prompted a Seeking Alpha rating downgrade to “Hold.” Upcoming data on CML therapies in December could influence investor sentiment, but near-term optimism remains tempered by the loss of a key metabolic disease asset and reliance on external partnerships. Analysts will likely monitor oncology pipeline progress and partnership negotiations to gauge long-term value.