Form 4: Vivo Opportunity, LLC Sells Shares of Terns Pharmaceuticals, Inc. (TERN) Under 10b5-1 Trading Plan

Vivo Opportunity, LLC, a 10% owner of Terns Pharmaceuticals, Inc., executed a series of sales of common stock between April 1, 2024, and April 3, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Vivo Opportunity, LLC, along with related entities, sold shares of Terns Pharmaceuticals (TERN) between April 1 and April 3, 2024.
• The sales were conducted under a Rule 10b5-1 trading plan adopted on September 29, 2023.
• The transactions involved multiple entities including Vivo Opportunity Fund Holdings, L.P., Vivo Capital Fund VIII, L.P., and Vivo Capital Surplus Fund VIII, L.P.
• The sales prices ranged from $5.97 to $7.30 per share.
• Vivo Opportunity Fund Holdings, L.P. sold 316,466 shares, reducing its holdings to 4,023,741 shares.
• Vivo Capital Fund VIII, L.P. sold 91,582 shares, reducing its holdings to 1,945,015 shares.
• Vivo Capital Surplus Fund VIII, L.P. sold 12,650 shares, reducing its holdings to 268,573 shares.

Sentiment

Score: 5

Explanation: Neutral sentiment as it reports stock sales by a major shareholder, which could be interpreted as either a planned diversification or a lack of confidence, but the 10b5-1 plan suggests it's pre-planned.

Risks

• The continued sales of shares by Vivo Opportunity, LLC and related entities could exert downward pressure on TERN's stock price.

Industry Context

Sales by significant shareholders are common and often pre-planned to avoid insider trading concerns. The use of a 10b5-1 plan suggests these sales were planned well in advance.

Stakeholder Impact

• Shareholders may react to the news of the stock sales, potentially leading to price volatility.
• The sales could be perceived negatively by some investors, potentially impacting investor confidence.

Key Dates