SCHEDULE 13G: Morgan Stanley Discloses Significant 8.1% Stake in Terns Pharmaceuticals, Inc.

Morgan Stanley and its subsidiary, Morgan Stanley Capital Services LLC, have disclosed beneficial ownership of 8.1% of Terns Pharmaceuticals, Inc.'s common stock as of March 31, 2025.

Summary

• Morgan Stanley, along with its wholly-owned subsidiary Morgan Stanley Capital Services LLC, has filed a Schedule 13G indicating significant beneficial ownership in Terns Pharmaceuticals, Inc.
• As of March 31, 2025, Morgan Stanley beneficially owns an aggregate of 7,099,954 shares of Terns Pharmaceuticals, Inc. common stock, representing 8.1% of the class.
• Morgan Stanley holds shared voting power over 7,098,454 shares and shared dispositive power over 7,099,954 shares.
• Morgan Stanley Capital Services LLC beneficially owns 6,094,918 shares, representing 7.0% of the class, with shared voting and dispositive power over all these shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Terns Pharmaceuticals, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant stake by a reputable financial institution like Morgan Stanley is generally viewed positively, indicating institutional interest and potential confidence in the company.

Positives

• The disclosure of a significant stake by a major financial institution like Morgan Stanley can signal institutional confidence in Terns Pharmaceuticals, Inc.'s future prospects.
• Increased institutional ownership often provides greater stability to a company's shareholder base.

Risks

• The document contains a standard legal warning that intentional misstatements or omissions of fact constitute federal criminal violations (18 U.S.C. 1001).

Future Outlook

This Schedule 13G filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding Terns Pharmaceuticals, Inc.'s future performance or strategic direction.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11." (Certification by Morgan Stanley and Morgan Stanley Capital Services LLC)

Industry Context

This filing reflects a standard disclosure of beneficial ownership by a large financial institution in a publicly traded pharmaceutical company. Such disclosures are common and provide transparency into significant holdings by institutional investors, which can be a factor in market perception and liquidity.

Comparison to Industry Standards

• This document primarily details beneficial ownership percentages and does not provide financial results or operational metrics for Terns Pharmaceuticals, Inc. that would allow for a direct comparison to industry standards or specific comparable companies/projects.

Related Party Transactions

• The filing clarifies that Morgan Stanley Capital Services LLC, which holds a significant portion of the reported shares, is a wholly-owned subsidiary of Morgan Stanley, indicating a related party relationship between the two reporting entities.

Stakeholder Impact

• Shareholders may view the significant institutional ownership by Morgan Stanley as a positive signal, potentially increasing investor confidence and market stability for Terns Pharmaceuticals, Inc.

Key Dates

Keywords

Terns Pharmaceuticals, Morgan Stanley, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, SEC Filing