Terns Pharma leaps on $65 million public offering to advance pipeline

Terns Pharmaceuticals (Nasdaq: TERN) saw it shares fly up more than 25% to $3.02 on Friday, after it announced a $65 million underwritten public offering, which is expected to close on August 16, 2022, subject to customary closing conditions.

Terns will sell 2,250,000 shares of its common stock at a price of $2.42 per share and, to certain investors in lieu of common stock, pre-funded warrants to purchase 14,630,000 shares of common stock at a price of $2.4199 per pre-funded warrant.

The offering was oversubscribed and led by new investors Fairmount Funds Management and Venrock Healthcare Capital Partners and included participation from existing top-tier healthcare investors. Cowen and Company is acting as lead book-running manager for the offering and UBS Securities is also acting as a bookrunner for the offering.