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Investing.com -- Terns Pharmaceuticals (NASDAQ:TERN) stock surged 28% Tuesday, extending its two-day gain to 120% following positive clinical data for its TERN-701 treatment in relapsed/refractory chronic myeloid leukemia (CML).
The rally comes as multiple analysts raised their price targets on the stock after the company’s Phase 1 CARDINAL trial data showed a 64% major molecular response (MMR) achievement rate at 24 weeks in efficacy-evaluable patients. This represents a significant improvement over historical benchmarks in this refractory setting.
Truist Securities analyst Srikripa raised the firm’s price target to $28 from $20 while maintaining a Buy rating, citing "unprecedented efficacy" that "handily beat" expectations. The analyst now assigns $1.4 billion in peak adjusted sales to TERN-701, up from $1.1 billion previously.
H.C. Wainwright analyst Andrew Fein upgraded Terns from Neutral to Buy with a $20 price target, calling the data a "material value inflection that elevates the program into a best-in-disease contender." Fein highlighted that the dataset was generated in a population with high disease burden, including patients with a median of 3 prior TKIs.
BMO Capital analyst Evan David Seigerman raised his price target to $22 from $15 while maintaining an Outperform rating, increasing his probability of success estimate to 70% and peak unadjusted sales projection to $3.7 billion.
The trial results showed that TERN-701 demonstrated a favorable safety profile with no dose-limiting toxicities at doses up to 500 mg daily and primarily low-grade treatment-emergent adverse events.
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