First Turn Management, LLC disclosed a new position in Terns Pharmaceuticals (TERN 5.43%) in a February 13, 2026, SEC filing, acquiring 872,049 shares in an estimated $35.23 million trade.
What happened
According to an SEC filing dated February 13, 2026, First Turn Management, LLC initiated a new position in Terns Pharmaceuticals, acquiring 872,049 shares. At quarter’s end, the fund’s Terns Pharmaceuticals stake was valued at $35.23 million, reflecting the combined effect of new share acquisition and stock price performance.
What else to know
- This new position in Terns Pharmaceuticals represents 4.03% of First Turn Management’s $875.20 million in reportable U.S. equity holdings as of December 31, 2025.
- Top five holdings post-filing:
- NASDAQ:ABVX: $51.41 million (5.9% of AUM)
- NASDAQ:RVMD: $50.85 million (5.8% of AUM)
- NASDAQ:INSM: $46.00 million (5.3% of AUM)
- NASDAQ:BBIO: $45.55 million (5.2% of AUM)
- NASDAQ:MIRM: $38.04 million (4.3% of AUM)
- As of February 13, 2026, Terns Pharmaceuticals shares were priced at $37.79, up a staggering 826.2% over the previous year, outperforming the S&P 500 by 814.43 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close February 13, 2026) | $37.79 |
| Market Capitalization | $4 billion |
| Net Income (TTM) | ($94.44 million) |
| One-Year Price Change | 826.2% |
Company Snapshot
- Terns Pharmaceuticals develops small-molecule therapeutics targeting non-alcoholic steatohepatitis (NASH) and obesity, with a pipeline including TERN-101 (Phase IIa), TERN-201 (Phase Ib), TERN-501 (Phase I), and TERN-601 (preclinical/early clinical).
- The company operates as a clinical-stage biopharmaceutical company, generating value through the advancement of proprietary drug candidates toward regulatory approval and potential out-licensing or commercialization partnerships.
- It targets patients with NASH and metabolic diseases, with primary customers expected to be healthcare providers, payers, and pharmaceutical partners upon commercialization.
Terns Pharmaceuticals is a clinical-stage biotechnology company focused on developing innovative therapies for liver and metabolic diseases, particularly NASH and obesity. Its strategy centers on advancing a diversified pipeline of small-molecule drug candidates with differentiated mechanisms and liver-targeted profiles. The company's competitive edge lies in its multi-pronged approach to address high unmet medical needs in metabolic disorders through both single-agent and combination therapies.
What this transaction means for investors
Momentum like this forces investors to separate story from substance. Terns Pharmaceuticals has rocketed 826% over the past year, with much of that move accelerating after the November 3 data release highlighting strong Phase 1 results for TERN-701 in relapsed and refractory CML. The company reported a 75% cumulative major molecular response rate by 24 weeks among evaluable patients, with no dose-limiting toxicities observed in escalation.
What is less clear is timing. All we know is the stake was built in the fourth quarter. The outsized rally began after the November update, so it is impossible to tell whether the fund bought before the surge or leaned into strength afterward. Either way, the allocation fits a portfolio already heavy in clinical-stage biotech names like ABVX, RVMD, and INSM, suggesting a deliberate bet on high-volatility drug development.
For long-term investors, the takeaway is discipline. Clinical-stage biotech can deliver extraordinary upside, but it cuts both ways. The science may be compelling, yet valuation now embeds significant optimism. Position sizing and pipeline durability matter more than headline percentage gains.
