Form 4: Terns Pharmaceuticals Director Carl L. Gordon Sells Shares

Director Carl L. Gordon reports selling Terns Pharmaceuticals (TERN) shares held indirectly through OrbiMed affiliated entities on July 15th and 16th, 2024.

Summary

• Carl L. Gordon, a director of Terns Pharmaceuticals, reported the sale of common stock on July 15th and 16th, 2024.
• The sales were executed at a price of $10 per share.
• The shares were held indirectly through various OrbiMed affiliated entities: OrbiMed Private Investments VII, LP (OPI VII), OrbiMed Asia Partners III, L.P. (OAP III), and OrbiMed Genesis Master Fund, L.P. (Genesis).
• On July 15, 2024, 39,433 shares were sold from OPI VII, 5,401 shares from OAP III, and 6,142 shares from Genesis.
• On July 16, 2024, 4,009 shares were sold from OPI VII, 556 shares from OAP III, and 623 shares from Genesis.
• Following these transactions, the number of shares beneficially owned indirectly through these entities is: 4,839,412 (OPI VII), 1,967,924 (OAP III), and 755,635 (Genesis).

Sentiment

Score: 4

Explanation: Director selling shares is generally viewed as slightly negative, but the indirect nature of the holdings and the disclaimer of beneficial ownership mitigate the concern.

Negatives

• A director selling shares could be interpreted negatively by the market.

Risks

• Continued selling by the director could put downward pressure on the stock price.

Industry Context

Sales by directors are a common occurrence, and the market typically assesses the reasons behind the sale (e.g., diversification, personal needs) to determine the potential impact on the company's prospects.

Comparison to Industry Standards

• Comparing the trading activity of Terns Pharmaceuticals' directors to those of similar biotech companies like Viking Therapeutics or Madrigal Pharmaceuticals could provide context.
• Analyzing the percentage of shares sold relative to the director's total holdings and the company's overall market capitalization can offer insights into the significance of the transaction.

Stakeholder Impact

• Shareholders may react to the news of the director's share sale.
• The impact on other stakeholders is likely minimal.

Key Dates