ORBIMED Advisors LLC divested 5.4 million shares of Terns Pharmaceuticals in the fourth quarter of 2025, representing approximately $125 million in reduced exposure to the clinical-stage biotech firm. The stake reduction trimmed the investment firm's holding in Terns to 1.78% of its overall portfolio, according to regulatory filings with the Securities and Exchange Commission.
Terns Pharmaceuticals, which develops therapies targeting nonalcoholic steatohepatitis (NASH) and other metabolic diseases, has experienced significant market momentum throughout 2025. The company's stock appreciated approximately 858% over the twelve-month period preceding the ORBIMED transaction, substantially outperforming broader market indices and reflecting investor enthusiasm for its pipeline candidates.
The portfolio adjustment by ORBIMED, a prominent healthcare-focused investment firm, occurs as Terns advances its clinical development programs. The partial exit follows a period of substantial valuation expansion for the biotechnology company and may signal a rebalancing of risk exposure relative to the firm's investment objectives.