ORBIMED Advisors Trims $125 Million Terns Stake After a Breakout Year, According to SEC Filing
The Motley Fool
by newsfeedback@fool.com (Eric Trie)February 20, 2026
AI-Generated Deep Dive Summary
ORBIMED Advisors LLC has significantly trimmed its stake in Terns Pharmaceuticals (NASDAQ:TERN) by selling 5,409,671 shares worth approximately $125 million, according to an SEC filing. This sale occurred on February 17, 2026, and reduced the firm’s holdings from a previously held position. The transaction reflects a decrease in the value of ORBIMED’s stake by $30.20 million, accounting for both share sales and changes in stock price. Post-sale, Terns Pharmaceuticals makes up just 1.78% of the fund’s reportable assets under management (AUM), shifting focus to other top holdings.
The move by ORBIMED comes amid a strong performance by Terns Pharmaceuticals over the past year. The company has seen its stock rally significantly, driven by positive expectations around its clinical pipeline and upcoming data points. This upward trajectory had likely contributed to the increased valuation of Terns’ shares prior to the sale. ORBIMED’s decision to reduce its stake raises questions about its assessment of the company’s future prospects and whether it believes the stock is overvalued at this point.
The filing highlights the dynamic nature of the biotech and pharmaceutical sectors, where investor sentiment can shift rapidly based on clinical developments and market conditions. While Terns’ rally has been impressive, the sale by ORBIMED underscores the importance of continuously reassessing investment positions to align with evolving market dynamics. Investors will likely closely monitor whether this strategic adjustment signals a broader trend among major stakeholders.
For readers interested in finance and investing, this story offers insight into how large institutional investors like ORBIMED make decisions about their holdings. The sale also serves as a reminder of the role that significant investors can play in shaping market sentiment and stock prices. As Terns continues to advance its pipeline and release key data points,
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Originally published on The Motley Fool on 2/20/2026