Terns Pharma Secures Global Rights for Key Drug, Fueling Expansion Ambitions Beyond China

Terns Pharmaceuticals, Inc. (NASDAQ: TERN), a notable performer among biotech stocks over the past year, has taken a decisive step to broaden its global footprint. The company announced a strategic revision to its existing agreement with Hansoh (Shanghai) Healthtech, effectively converting its previous non-exclusive license into a perpetual, exclusive worldwide license for therapeutic products containing TERN-701, its investigational oncology asset. This license excludes the Hansoh Territory, defined as mainland China, Taiwan, Hong Kong, and Macau.

The amended terms require Terns to pay a $1 million upfront fee and tiered royalties on future net sales, ranging from 0.75% to 1.25%. Analysts view this as a cost-effective move to secure full control over the drug's commercialization in key Western markets, a critical path for maximizing value. This development follows a significant vote of confidence from Wall Street; last month, Citizens JMP Securities raised its price target on TERN from $35 to $57, citing a strong interim clinical update for TERN-701 in chronic myeloid leukemia.

Background & Analysis: Terns, primarily focused on NASH and oncology, is strategically pivoting to reduce its regional dependency. Securing exclusive global rights for a core asset like TERN-701 mitigates the geopolitical and regulatory risks associated with a single-market strategy. For Hansoh, the deal provides guaranteed milestone payments and royalties from Terns' international development efforts, creating a non-dilutive revenue stream.

Expert Commentary:

• Dr. Anya Sharma, Portfolio Manager at BioVenture Capital: "This is a textbook strategic licensing play. Terns is paying a modest premium to eliminate future commercial ambiguity. Owning exclusive global rights significantly enhances partnership opportunities in Europe and North America, making the company a more attractive entity."
• Mark Reynolds, Independent Biotech Analyst: "The market is cheering now, but let's not ignore the execution risk. They've bought the ticket, but the real journey—successful global trials, regulatory approvals, and commercial build-out—is just beginning. The royalty structure is favorable, but it's still money leaving the table."
• Lisa Chen, Patient Advocate & Blogger: "Frankly, I'm tired of hearing about stock prices and territories. As a CML patient, I see 'best-in-class profile' in a press release and want to scream. What matters is getting this drug to patients who have run out of options, and fast. All this corporate maneuvering better translate to faster, more accessible trials."
• David Forsythe, Partner at LifeSci Advisors: "The analyst upgrade and this licensing move are interconnected. The clinical data suggested TERN-701 could be a serious contender. By locking down global rights, Terns has effectively captured more of the drug's potential economic value for its shareholders, justifying the revised price target."

The company's pipeline also includes programs targeting FXR, VAP-1, THR-β, and GLP-1 for metabolic and liver diseases.