TERN Stock Risk & Deep Value Analysis
Terns Pharmaceuticals Inc
Healthcare • Biotechnology
DVR Score
out of 10
What You Need to Know About TERN Stock
We analyzed Terns Pharmaceuticals Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran TERN through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Not Applicable. Here's what we found.
TERN Risk Analysis & Red Flags
What Could Go Wrong
For former shareholders, the only remaining 'risk' would have been if the Merck acquisition (announced in March 2026) had failed to close by May 5, 2026. However, the deal completed as planned, and Terns is now a wholly-owned subsidiary of Merck. There is no longer any investment risk or reward associated with Terns Pharmaceuticals Inc. as a standalone public entity.
Risk Matrix
Overall
Not Applicable
Financial
Not Applicable
Market
Not Applicable
Competitive
Not Applicable
Execution
Not Applicable
Regulatory
Not Applicable
Red Flags
- ⚠
Company delisted on May 5, 2026.
- ⚠
No longer trades publicly.
- ⚠
All shareholder equity converted to cash at $53.00/share.
Upcoming Risk Events
- 📅
Not applicable; the primary risk event (deal termination) has passed as the acquisition is complete.
When to Reconsider
- 🚪
Not applicable; the company has been acquired and delisted.
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What Does Terns Pharmaceuticals Inc (TERN) Do?
Market Cap
$6.12B
Sector
Healthcare
Industry
Biotechnology
Employees
59
Terns Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, develops small-molecule product candidates for the treatment of oncology and obesity. The company develops TERN-701, an allosteric BCR-ABL tyrosine kinase inhibitor (TKI) that is in Phase 1 clinical trial for chronic myeloid leukemia (CML), a form of cancer that starts in bone marrow. It also develops TERN-501, a thyroid hormone receptor beta agonist with enhanced liver distribution and metabolic stability that is in Phase IIa clinical trial for the treatment of metabolic dysfunction-associated steatohepatitis (MASH); and TERN-601, a small-molecule Glucagon-Like Peptide-1 receptor agonist program that is intended to orally be administered for obesity, as well as TERN-800 series of small-molecule glucose-dependent insulinotropic polypeptide receptor (GIPR) modulators for obesity. The company was incorporated in 2016 and is headquartered in Foster City, California.
Visit Terns Pharmaceuticals Inc WebsiteInvestment Thesis
The investment thesis for Terns Pharmaceuticals as a high-risk, high-reward 10x growth opportunity is entirely negated. The company was acquired by Merck for $53.00 per share and subsequently delisted on May 5, 2026. All independent growth potential has been capitalized and transferred to Merck. Terns no longer represents a viable investment for public equity investors.
Is TERN Stock Undervalued?
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TERN Price Targets & Strategy
12-Month Target
$NaN
Bull Case
$NaN
Bear Case
$NaN
Valuation Basis
Not applicable; Terns Pharmaceuticals Inc. has been delisted following its acquisition by Merck for $53.00 per share on May 5, 2026. The company is no longer publicly traded, and its common stock no longer exists as an independent investment vehicle.
Entry Strategy
Not applicable; TERN common stock no longer trades publicly. Shareholders were cashed out at $53.00 per share.
Exit Strategy
Not applicable; TERN common stock no longer trades publicly. The acquisition is complete.
Portfolio Allocation
Not applicable; TERN no longer exists as a public investment.
Price Targets & Strategy
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Is TERN Financially Healthy?
Valuation
P/E Ratio
-51.41
PEG Ratio
-35.90
Profitability
Return on Equity
-20.02%
Revenue Growth
-100.00%
EPS
$-1.03
Balance Sheet
Current Ratio
62.41
Quick Ratio
62.09
Debt/Equity
0.10
Other
Beta (Volatility)
-0.39
Does TERN Have a Competitive Moat?
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⚪ None
Moat Trend
Not Applicable
Terns Pharmaceuticals, as a standalone entity, was a clinical-stage biotech company primarily focused on developing novel therapeutics. While its pipeline assets, particularly TERN-701, demonstrated promising clinical data and received FDA Breakthrough Therapy Designation (which would have contributed to an 'Intangible Assets/IP' moat if it had remained independent), it had not yet established a durable economic moat from a commercial or operational standpoint. Its value was in its intellectual property and scientific expertise, which have now been absorbed by Merck.
Moat Erosion Risks
- •Competition from larger pharmaceutical companies (now integrated into Merck).
- •Clinical trial failures (now a risk for Merck's pipeline).
- •Regulatory hurdles (now a risk for Merck's pipeline).
TERN Competitive Moat Analysis
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TERN Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Not Applicable; public trading ceased.
Institutional Sentiment
Not Applicable; public equity research coverage ceased upon acquisition completion.
Insider Activity (Form 4)
All prior directors and officers were replaced by Merck designees at closing on May 5, 2026. In-the-money stock options were cashed out at the spread over the $53.00 merger price, and RSUs converted to cash at $53.00 per share.
Options Flow
Not Applicable; TERN is no longer publicly traded, and options contracts have expired worthless or been settled according to acquisition terms.
Earnings Intelligence
Next Earnings
Not Applicable
Surprise Probability
Not Applicable
Historical Earnings Pattern
Not applicable; Terns is no longer a public company reporting earnings.
Key Metrics to Watch
Competitive Position
Top Competitor
Not Applicable
Market Share Trend
Not applicable; Terns is no longer a standalone entity.
Valuation vs Peers
Not applicable; Terns is no longer publicly traded.
Competitive Advantages
- •Not applicable for public equity analysis; Terns' assets are now part of Merck's portfolio.
Market Intelligence
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What Could Drive TERN Stock Higher?
Near-Term (0-6 months)
- •Not applicable; Terns Pharmaceuticals is no longer an independent public entity.
Medium-Term (6-18 months)
- •Not applicable; Terns Pharmaceuticals is no longer an independent public entity.
Long-Term (18+ months)
- •Not applicable; Terns Pharmaceuticals is no longer an independent public entity.
Catalysts & Growth Drivers
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What's the Bull Case for TERN?
- ✓
N/A; TERN is no longer a public investment.
Bull Case Analysis
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Competing with TERN
See how Terns Pharmaceuticals Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Terns Pharmaceuticals Inc TERN | $6.1B | 0.1 | -51.4 | — | — | -100.0% | |
AbbVie Inc ABBV | $381.1B | 0.1 | 104.8 | $15.0B | 5.8% | 9.5% | Compare → |
Johnson & Johnson JNJ | $557.1B | 1.0 | 26.5 | — | 21.8% | 7.9% | Compare → |
Eli Lilly and Co LLY | $965.0B | 0.5 | 52.6 | — | — | — | Compare → |
Pfizer Inc PFE | $146.4B | 4.0 | 19.5 | $62.6B | 11.8% | 1.4% | Compare → |
UnitedHealth Group Inc UNH | $365.5B | 0.3 | 30.3 | $447.6B | 2.7% | 9.7% | Compare → |
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How Terns Pharmaceuticals Inc Makes Money
Terns Pharmaceuticals Inc. was a clinical-stage biopharmaceutical company focused on developing a pipeline of small-molecule product candidates for the treatment of oncology and metabolic diseases. It operated by conducting preclinical and clinical trials to advance its drug candidates, with the ultimate goal of commercializing successful therapies. Revenue generation was primarily through upfront payments and milestones from collaboration agreements, as it had no commercialized products. Its business model was highly dependent on successful drug development and regulatory approvals. As of May 5, 2026, Terns has been acquired by Merck and operates as a wholly-owned subsidiary, with its pipeline integrated into Merck's R&D efforts.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Terns Pharmaceuticals Inc (TERN)?
As of May 9, 2026, Terns Pharmaceuticals Inc has a DVR Score of 0.1 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Terns Pharmaceuticals Inc?
Terns Pharmaceuticals Inc's market capitalization is approximately $6.1B. The company operates in the Healthcare sector within the Biotechnology industry.
What ticker symbol does Terns Pharmaceuticals Inc use?
TERN is the ticker symbol for Terns Pharmaceuticals Inc. The company trades on the NMS.
What is the risk level for TERN stock?
Our analysis rates Terns Pharmaceuticals Inc's overall risk as Not Applicable. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of TERN?
Terns Pharmaceuticals Inc currently has a price-to-earnings (P/E) ratio of -51.4. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is Terns Pharmaceuticals Inc's revenue growing?
Terns Pharmaceuticals Inc has reported revenue growth of -100.0%. Revenue has been declining, which warrants closer examination.
How often is the TERN DVR analysis updated?
Our AI-powered analysis of Terns Pharmaceuticals Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 9, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for TERN (Terns Pharmaceuticals Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.