What is Terns Pharmaceuticals, Inc.'s Shariah compliance score?

Terns Pharmaceuticals, Inc. (TERN) has a Shariah compliance score of 82/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Terns Pharmaceuticals, Inc. pass AAOIFI screening?

Terns Pharmaceuticals, Inc. (TERN) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (TERN: 0.0%), (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. HalalScreener provides free AAOIFI screening for 6,200+ stocks at halalscreener.app.

How much purification is needed for Terns Pharmaceuticals, Inc. stock?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the exact percentage and amount for Terns Pharmaceuticals, Inc. (TERN) using the latest financial data.

Where can I screen Terns Pharmaceuticals, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Terns Pharmaceuticals, Inc. (TERN) and 5,100+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows the verdict, compliance grade, score, and debt ratio free. No credit card or signup required for basic screening; the full ratio breakdown is part of Pro. HalalScreener also includes an AI Islamic Scholar for follow-up questions about TERN's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

TERN: Is Terns Pharmaceuticals, Inc. Halal?

Terns Pharmaceuticals, Inc.

NASDAQHealthcareUS

$52.95

-0.03%

Market Cap: 4.8B

Compliance Status

Halal

Screened on Sep 2, 2026 · AAOIFI Standard 21

Very Good

82Score

Is Terns Pharmaceuticals, Inc. (TERN) halal? Halal. Based on AAOIFI screening, Terns Pharmaceuticals, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 82/100 (Grade: A).

Quote this verdict

HalalScreener rates Terns Pharmaceuticals, Inc. (TERN) Halal, 82/100, grade A under AAOIFI Standard 21, screened Sep 2, 2026. Source: https://halalscreener.app/en/stock/TERN

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

0.0% of 30.0% limit

What this means for you

You can own TERN

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened TERN's prohibited income, but the exact share you would need to purify is part of Pro.

About Terns Pharmaceuticals, Inc.

Terns Pharmaceuticals, Inc. is a biopharmaceutical firm currently in the clinical development phase, dedicated to advancing novel small-molecule treatments. Its primary focus lies in developing both standalone agents and combination therapies to address non-alcoholic steatohepatitis (NASH) and obesity. The company's pipeline includes several key drug candidates: TERN-101, a farnesoid X receptor agonist distinguished by its liver-specific distribution and non-bile acid properties, is presently undergoing Phase IIa clinical trials for NASH. TERN-201, a vascular adhesion protein-1 inhibitor, is in Phase Ib clinical studies, also targeting NASH. Terns is also progressing TERN-501, a thyroid hormone receptor beta agonist engineered for improved liver targeting and metabolic resilience, through Phase I clinical trials for NASH. Furthermore, the company is advancing TERN-601, an oral small-molecule Glucagon-Like Peptide-1 receptor agonist program, intended for the management of NASH and various metabolic conditions, including obesity. Established in 2016, Terns Pharmaceuticals maintains its corporate headquarters in Foster City, California.

Sector: Healthcare · Industry: Biotechnology

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 2, 2026

Compliance History

Halalnow
since Aug 2026
Under Review
until the change above
Halal
until the change above
Not Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

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Frequently Asked Questions

Is Terns Pharmaceuticals, Inc. (TERN) halal to invest in?

Based on AAOIFI Standard 21 screening, Terns Pharmaceuticals, Inc. (TERN) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Terns Pharmaceuticals, Inc. get a A compliance rating?

Terns Pharmaceuticals, Inc. (TERN) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 0.0% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Terns Pharmaceuticals, Inc.'s Shariah verdict?

Terns Pharmaceuticals, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Terns Pharmaceuticals, Inc. re-screened for Shariah compliance?

Terns Pharmaceuticals, Inc. (TERN) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Sep 2, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.