OrbiMed Advisors LLC and affiliated entities have sold a significant number of shares in Terns Pharmaceuticals, Inc. (NASDAQ:TERN), a pharmaceutical company specializing in the development of treatments for liver disease and cancer. The sales, which occurred on July 15 and 16, 2024, amounted to a total of $561,640 at a price of $10.00 per share.
According to the latest filings, OrbiMed Advisors LLC, along with OrbiMed Capital GP VII LLC, OrbiMed Genesis GP LLC, OrbiMed Advisors III Ltd, and OrbiMed Asia GP III, L.P., divested a total of 56,164 shares in Terns Pharmaceuticals. The transactions were spread across two days, with 50,176 shares sold on July 15 and the remaining 5,988 shares on July 16.
The shares were sold at a uniform price of $10.00 per share, reflecting a decisive move by the investment entities. Post-transaction, the ownership stakes of the reporting entities have adjusted, with OrbiMed Advisors LLC and its affiliates still holding a substantial number of Terns Pharmaceuticals shares.
OrbiMed Advisors LLC, a notable investor in the healthcare sector, is recognized for its active management of investments in companies developing medical and pharmaceutical innovations. The recent sale by OrbiMed entities indicates a rebalancing of their investment portfolio, although the firm continues to hold a significant interest in Terns Pharmaceuticals as indicated by their remaining share count following the transactions.
Investors often monitor such transactions closely as they may reflect the investment firm's view on the company's future prospects or their investment strategy adjustments. The reported transactions were made in accordance with SEC regulations, and the details were disclosed publicly to maintain transparency in the market.
The sale of shares by major investors like OrbiMed entities is a routine part of market activity and provides liquidity, allowing other investors the opportunity to participate in the potential growth of companies like Terns Pharmaceuticals. As with any investment decisions, market participants are encouraged to consider a variety of factors when evaluating the significance of these transactions.
In other recent news, Terns Pharmaceuticals has been making significant strides in its clinical trials and drug development. The biopharmaceutical company has reported encouraging findings from the ongoing Phase 1 study of TERN-701, an allosteric BCR-ABL inhibitor for chronic myeloid leukemia (CML). Preliminary results indicate that TERN-701 can be administered once daily with or without food, potentially offering an advantage over existing treatments that require fasting and twice-daily dosing.
Terns Pharmaceuticals is also progressing with the CARDINAL trial for TERN-701, with results expected in the latter half of 2024. This trial will assess the drug's safety, pharmacokinetics, and efficacy in patients who have previously been treated for CML. Analysts from JMP Securities and BMO Capital Markets Corp. have given Terns Pharmaceuticals positive ratings, with price targets of $15.00 and $19.00 respectively.
The company also has a promising drug, TERN-601, aimed at addressing obesity. Preliminary safety findings are encouraging, and weight loss data is expected in the latter half of 2024. These developments are part of Terns Pharmaceuticals' broader mission to address serious diseases with its portfolio of small-molecule product candidates.
InvestingPro Insights
Amidst the news of OrbiMed Advisors LLC's recent divestment in Terns Pharmaceuticals, Inc. (NASDAQ:TERN), a deeper dive into the company's financials and market performance offers additional context. Terns Pharmaceuticals has been a subject of interest due to its significant return over the last week, with a 15.59% increase in its price total return. This is part of a broader trend that has seen the company's share price soar, boasting a 30.8% return over the last month and an impressive 110.02% over the last three months.
Despite these strong returns, Terns Pharmaceuticals exhibits some financial metrics that warrant investor attention. The company holds a market capitalization of $627.37M, with a Price to Earnings (P/E) ratio standing at -7.51, reflecting market expectations of future growth despite current unprofitability. Additionally, the Price to Book ratio is reported at 2.63 as of the last twelve months as of Q1 2024, indicating how the stock is valued at the market price relative to its book value.
From an investment strategy perspective, Terns Pharmaceuticals shows characteristics that might appeal to certain investors. According to InvestingPro Tips, the company holds more cash than debt on its balance sheet and has seen 3 analysts revise their earnings estimates upwards for the upcoming period. However, it is also noted that the company is not expected to be profitable this year and has weak gross profit margins. For investors looking for more in-depth analysis and additional InvestingPro Tips, there are 13 more tips available, which can be accessed at InvestingPro. To enhance your investment strategy with these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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