What Terns Pharmaceuticals (TERN)’s Expanded Global Rights to TERN-701 Mean For Shareholders

• Terns Pharmaceuticals previously announced an amendment to its Exclusive Option and License Agreement with Hansoh, converting a non-exclusive license into an exclusive, sublicensable, royalty-bearing, perpetual worldwide license for TERN-701 outside China, Taiwan, Hong Kong, and Macau.
• This move materially increases Terns’ control over the global development and commercialization path of TERN-701, reshaping the asset’s long-term commercial potential.
• Next, we’ll examine how gaining an exclusive worldwide license for TERN-701 outside key Asian territories influences Terns’ investment narrative.

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What Is Terns Pharmaceuticals’ Investment Narrative?

The core Terns Pharmaceuticals story still rests on whether TERN-701 and the broader pipeline can justify today’s valuation, given zero revenue and consistent losses. Investors are effectively backing clinical execution, future partnering and the company’s ability to manage dilution after a very large follow-on raise and a significant lock-up expiry in early 2026. Against that backdrop, the new exclusive, sublicensable worldwide license for TERN-701 outside China, Taiwan, Hong Kong and Macau looks material for the near term: it tightens Terns’ grip on its lead asset just as interim Phase 1 data attracted more attention and a higher analyst price target. That shift slightly tilts the balance of short term catalysts toward clinical data and potential business development, but it does not remove the key risk that continued cash burn and share issuance remain central to the story.

However, the coming lock-up expiry could change the trading picture in ways investors should understand.

Our valuation report unveils the possibility Terns Pharmaceuticals’ shares may be trading at a premium.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span roughly US$58 to US$99 per share, showing how differently private investors view Terns’ upside. Set that against the company’s lack of revenue, ongoing losses above US$90 million, and the heightened importance of upcoming TERN-701 data after the expanded license, and it is clear you are weighing very different views on how the story could play out. Exploring several of these perspectives can help frame your own expectations around both risk and potential rewards.

Explore 2 other fair value estimates on Terns Pharmaceuticals – why the stock might be worth just $58.12!

Build Your Own Terns Pharmaceuticals Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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