By Colin Kellaher

Terns Pharmaceuticals Inc., a biopharmaceutical startup backed by Eli Lilly & Co., on Tuesday said it raised $87 million in a Series C funding round at an undisclosed valuation.

Terns said Deerfield Management Co. led the round, alongside an equity investment by Eli Lilly. OrbiMed Advisors, Lilly Asia Ventures, Vivo Capital, Samsara Capital, Suvretta Capital Management also participated in the round, which brings the company's total funding to $197 million.

Terns said it will use the new funds to advance clinical trials across its pipeline of candidates for the treatment of non-alcoholic steatohepatitis, a chronic liver condition commonly known as NASH.

Terns was launched in April 2017 with $30 million in Series A funding led by Lilly Asia Ventures, whose investors include Eli Lilly. Lilly Asia Ventures also participated in an $80 million Series B financing round in October 2018. The Foster City, Calif., startup in 2018 signed an exclusive licensing agreement with Eli Lilly to develop, manufacture and commercialize three small molecule therapeutic candidates targeting NASH.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

01-05-21 1032ET