Terns Stock Surges 300% in One Year — What a New $43 Million Position Signals for Investors

Company Overview - Terns Pharmaceuticals is a clinical-stage biotechnology company focused on developing innovative therapies for metabolic diseases such as non-alcoholic steatohepatitis (NASH) and obesity [6][9] - The company has a pipeline of differentiated small-molecule drug candidates with advanced liver-targeted mechanisms and metabolic stability [6][9] - Terns Pharmaceuticals reported a market capitalization of $2.3 billion and a net income of ($94.4 million) for the trailing twelve months [4] Recent Developments - Commodore Capital initiated a new position in Terns Pharmaceuticals during the third quarter, acquiring 5.7 million shares valued at approximately $42.8 million, which represents 2.1% of the fund's $2 billion in reportable U.S. equity holdings [2][11] - Terns Pharmaceuticals recently reported positive early efficacy data for its lead oncology program, TERN-701, showing a 75% cumulative major molecular response rate by 24 weeks [12] - The stock price of Terns Pharmaceuticals has increased by 319% over the past year, closing at $25.79, significantly outperforming the S&P 500, which rose by 13% in the same period [3] Financial Position - As of the end of the third quarter, Terns Pharmaceuticals had $295.6 million in cash, extending its financial runway into 2028 [13] - The new stake in Terns Pharmaceuticals by Commodore Capital is outside the fund's top five holdings, indicating a strategic but cautious investment approach [3][11]