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Citizens JMP analyst Silvan Tuerkcan reiterated a Market Outperform rating and $20.00 price target on Terns Pharmaceuticals (NASDAQ:TERN), a $350 million market cap biotech company. According to InvestingPro data, analysts’ targets range from $14 to $34, suggesting significant upside potential. The decision follows encouraging efficacy data for the company’s TERN-701 treatment.
Last year, TERN-701 demonstrated positive trends in efficacy for refractory patients and those not tolerating their TKI treatment. The drug generated a cumulative MMR rate of 50% at 12 weeks in non-T315I patients and reduced BCR::ABL1 transcripts in 88% of MR1+ patients. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt on its balance sheet.
The treatment showed significant responses post asciminib and in MR1+ patients. Terns Pharmaceuticals is considering pivotal development in the front-line setting, while competitor ELVN is targeting the same second-line and beyond opportunity.
Novel therapeutics have improved survival rates for CML patients, with 10-year survival rates exceeding 80%. Approximately 40% of patients switch within the BCR:ABL TKI class, commonly due to intolerance, creating demand for efficacious and tolerable TKIs.
Citizens JMP views a significant need for new therapies in this space and believes the data shows that novel TKIs can raise the standard of care in the second-line and beyond setting.
In other recent news, Terns Pharmaceuticals has been the focus of several analyst updates and developments. BMO Capital Markets adjusted its outlook on the company, reducing the price target to $15 from $26 while maintaining an Outperform rating. This decision was influenced by recent clinical program updates, patent proceedings, and broader economic factors. Terns Pharmaceuticals is progressing with its CARDINAL study for TERN-701, having recently enrolled the first patient in a dose expansion trial. The U.S. Patent and Trademark Office resolved double patenting rejections related to TERN-601, which could lead to a potential patent in the future. JMP Securities maintained a $20 price target and a Market Outperform rating, noting TERN-601’s positive safety profile compared to Pfizer (NYSE:PFE)’s discontinued danuglipron. Mizuho (NYSE:MFG) Securities also reiterated an Outperform rating with a $14 target, highlighting the benefit of Pfizer’s withdrawal from the GLP-1RA space, which removes a competitor. Mizuho emphasized Terns Pharmaceuticals’ strategic position and cash runway extending to 2028, with upcoming data catalysts anticipated in 2025. These developments underscore the evolving landscape for Terns Pharmaceuticals in the competitive diabetes and obesity treatment markets.
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