Terns Pharmaceuticals reports progress in clinical trials

FOSTER CITY, Calif. - Terns Pharmaceuticals Inc. (NASDAQ: TERN), a clinical-stage biopharmaceutical company trading near its 52-week low of $3.72, announced updates on its ongoing development programs, including the CARDINAL study for TERN-701 and the upcoming FALCON trial for TERN-601. According to InvestingPro data, the company maintains a strong liquidity position with current assets significantly exceeding short-term obligations, supporting its projection to fund operations into 2028.

The CARDINAL study, focusing on TERN-701, an oral treatment for chronic myeloid leukemia (CML), completed its dose escalation phase in January 2025. The dose expansion phase is slated to begin in the second quarter of 2025. Promising interim data indicated strong molecular responses and a favorable safety profile. Further safety and efficacy data are anticipated in the fourth quarter of 2025. This development comes as InvestingPro reports six analysts have revised their earnings expectations upward for the upcoming period, suggesting growing confidence in the company’s pipeline.

New findings from a U.S. pharmacokinetic study of healthy volunteers suggest that TERN-701 has an improved drug-drug interaction (DDI) profile compared to asciminib, potentially allowing safer co-administration with commonly prescribed medications, such as statins. Terns plans to publish these DDI results at a future scientific conference.

In the field of obesity treatment, Terns unveiled the design for the Phase 2 FALCON trial of TERN-601, a small-molecule GLP-1 receptor agonist. The trial is expected to commence early in the second quarter of 2025, with 12-week data due in the second half of the year. The FALCON trial aims to evaluate the efficacy and safety of TERN-601 in adults with overweight or obesity, focusing on weight loss and tolerability without complicated dose titration.

Additionally, Terns continues to explore opportunities for TERN-501, a thyroid hormone receptor-beta agonist, in metabolic diseases and advances its discovery efforts on GIPR modulators for obesity.

The company’s financial position remains robust, with a cash balance of $372.8 million as of September 30, 2024, which is projected to support its operations into 2028. InvestingPro analysis indicates the company is currently undervalued, with minimal debt exposure and a healthy current ratio of 32.99. For deeper insights into Terns’ financial health and detailed valuation metrics, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Terns’ leadership team will present at the TD Cowen 45th Annual Healthcare Conference in Boston from March 3-5, 2025. The information for this article is based on a press release statement.

In other recent news, Terns Pharmaceuticals has announced several significant developments that may interest investors. The company reported promising early results from its Phase 1 CARDINAL study for TERN-701, a drug candidate for chronic myeloid leukemia (CML). The study demonstrated encouraging safety and efficacy outcomes, with a cumulative Major Molecular Response (MMR) rate of 50% among patients treated for three months or more. Additionally, Oppenheimer has maintained an Outperform rating on Terns Pharmaceuticals, raising the price target to $20 due to the positive interim data from the TERN-701 study. The analysts highlighted the drug’s potential advantages over existing treatments and the upcoming data readouts as key catalysts.

Moreover, Terns Pharmaceuticals recently appointed Andrew Gengos as the new Chief Financial Officer, succeeding Mark Vignola, who will continue as a consultant through mid-2025. CEO Amy Burroughs will serve as the interim principal financial officer, while David Strauss will act as the interim principal accounting officer. These leadership changes align with the company’s strategic efforts to bolster its financial and corporate strategy. These developments come as Terns Pharmaceuticals focuses on advancing its clinical-stage programs, including TERN-601 for obesity, with plans for a Phase 2 study in early 2025.

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