Now, gather ’round, if you please, and let me tell you a story. It concerns a company called Terns Pharmaceuticals, a name that sounds like something a sailor might shout when a squall hits. And it concerns a rather large fish – a whale, you might say – named ORBIMED Advisors. These folks aren’t chasing cod, mind you, but chasing returns on the stock market. A curious occupation, if you ask me, but one that keeps a good many folks employed…and occasionally, quite rich.
Just the other day, February 17th, 2026, to be precise, ORBIMED decided to lighten its load of Terns shares. They sold off a considerable heap – 5,409,671 shares, to be exact – amounting to around $125 million. That’s a sum that could buy a small country, or at least a very large collection of rocking chairs. They still hold a piece of the pie, mind you, some 2,153,300 shares, but they’ve trimmed the sails, so to speak. A wise move, perhaps, or a sign of things to come? That’s what we’re here to ponder.
This sell-off leaves ORBIMED with Terns representing about 1.78% of their overall holdings. It’s a drop in the bucket for a fund of their size, but enough to cause a ripple or two in the pond. Their top holdings, for those keeping score, include EWTX at $385.09 million, LLY at $323.69 million, BSX at $230.68 million, SVA at $184.47 million, and EW at $157.11 million. A formidable collection, to be sure.
Now, Terns itself has been on a bit of a tear, soaring up 858.4% in the last year. A remarkable feat, if I may say so, outperforming even the mighty S&P 500 by a considerable margin. It’s enough to make a man dizzy, and it always pays to remember that what goes up must eventually come down…or at least level off. At the close of the market on February 19th, 2026, the stock stood at $39.45, with a market capitalization of $4.29 billion. They’re currently showing a net loss of $94.44 million, which is a peculiar state of affairs for a company with such a lofty valuation, but such is the nature of the beast.
Terns, you see, is a clinical-stage biotechnology company, which is a fancy way of saying they’re trying to cook up new medicines. They specialize in liver and metabolic diseases, which are ailments that plague a good many folks. They’re working on small-molecule therapies for NASH and obesity, with several candidates in various stages of testing. It’s a noble pursuit, to be sure, but a risky one. Developing new drugs is a costly and time-consuming affair, and there’s no guarantee of success.
Their primary customers, should they succeed, will be healthcare providers, pharmaceutical partners, and, of course, the patients themselves. A worthy clientele, indeed. But the market is a fickle thing, and investors are often more interested in potential than in present reality. Terns is valued on its pipeline, on the promise of future success, rather than on current sales. It’s a bit like betting on a horse before the race has even begun.
So, what does all this mean for you, the investor? Well, it means that Terns is a high-risk, high-reward proposition. The stock has already climbed to dizzying heights, and there’s a considerable amount of optimism baked into the price. ORBIMED’s decision to trim its position suggests that even the seasoned professionals are taking a bit of profit off the table. It’s a signal, not necessarily a warning, but one worth heeding.
Moving forward, keep a close eye on Terns’ clinical data. The results of their trials will determine whether the current valuation is justified. And pay attention to their balance sheet. Development-stage biotechs often need to raise additional capital, and dilution can quickly unwind any gains. In the world of biotechnology, strong data sustains valuation, while a lack of it can send a stock tumbling faster than a runaway stagecoach. It’s a lesson best learned before you put your money on the line.
| Metric | Value |
|---|---|
| Price (as of market close February 19th, 2026) | $39.45 |
| Market capitalization | $4.29 billion |
| Net income (TTM) | $-94.44 million |
| One-year price change | 858.4% |
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2026-02-20 08:03