Terns Pharmaceuticals, Inc. (NASDAQ: TERN) closed a $747.5 million underwritten public offering on December 11, 2025. The company sold 18,687,500 shares of common stock at $40.00 per share, and the underwriters exercised their option for an additional 2,437,500 shares, bringing the total issue to 21,125,000 shares.
The proceeds will be used to fund the development of TERN‑701, the company’s lead oncology candidate for chronic myeloid leukemia (CML). TERN‑701 has shown a 74 % major molecular response rate at 24 weeks in patients who had received prior therapy, outperforming the benchmark drug Scemblix. The capital raise gives Terns the financial runway to advance the drug through late‑stage trials and prepare for regulatory submission.
Prior to the offering, Terns maintained a cash balance that had supported its clinical program but was projected to be depleted before the next milestone. The $747.5 million raise extends the company’s runway by an estimated 18 months, allowing it to sustain its research and development pipeline without additional debt. The issuance of 21.1 million new shares represents a dilution of existing shareholders, but the company’s management has emphasized that the long‑term value created by the expanded cash position outweighs the short‑term dilution.
In a statement, Terns’ leadership highlighted the strategic importance of the offering. The company noted that the infusion of capital will accelerate the development of TERN‑701, support ongoing clinical studies, and provide working capital for general corporate purposes. Management expressed confidence that the strong clinical data and the robust demand for CML therapies will translate into a successful market entry.
The announcement was met with a wave of analyst upgrades and increased price targets. Several major research houses raised their targets for Terns, citing the superior efficacy profile of TERN‑701 and the company’s solid financial footing following the equity raise. The market reaction reflected heightened investor confidence in the company’s pipeline and its ability to capitalize on the growing CML market.
Biotech investors were particularly receptive to the news amid a broader environment of cautious optimism for oncology companies. The successful completion of a large equity offering in a sector that has seen mixed funding outcomes underscores Terns’ strong positioning and the market’s willingness to back companies with compelling clinical data.
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