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Terns Surges 29.6% in Three Months: Will the Momentum Continue?
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Shares of Terns Pharmaceuticals, Inc. (TERN - Free Report) , a clinical-stage biopharmaceutical company, rose 29.6% in the past three months compared with the industry’s growth of 7.4%. The stock outperformed the sector and the S&P 500 Index during the said time frame.
The outperformance can be attributed to encouraging pipeline progress of its obesity and oncology candidates.
TERN Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Terns Targets Lucrative Obesity Market
Terns is developing a portfolio of small molecule product candidates in the oncology and obesity space. The pipeline contains three clinical-stage development programs, including an allosteric BCR-ABL inhibitor, a small molecule glucagon-like peptide-1 (GLP-1) receptor agonist, a THR-β agonist and a preclinical GIPR modulator discovery effort, prioritizing a GIPR antagonist nomination candidate.
The company is evaluating TERN-601, an oral, small-molecule GLP-1 receptor agonist for obesity.
A phase I first-in-human clinical trial in obese and overweight participants is progressing. Terns is on track to report top-line 28-day weight loss data this month. The primary endpoints include safety and tolerability assessments. Secondary and exploratory endpoints include PK and change in body weight over 28 days.
Obesity is a lucrative market that is in the spotlight following the stupendous success of Novo Nordisk’s Wegovy (semaglutide) among others.
Positive data readouts from the ongoing studies should keep investors’ interest afloat and maintain momentum for Terns.
Meanwhile, preparations are underway to rapidly progress to a 12-week, phase IIa study in obesity, following supportive data from the phase I study.
In June, Terns presented new preclinical data that supported the advancement of pipeline candidate TERN-501 in combination with a GLP-1 receptor agonist for obesity. The candidate, TERN-501, is an oral, thyroid hormone receptor-beta (THR-β) agonist.
Preclinical findings demonstrated that TERN-501, in combination with semaglutide, significantly enhanced weight loss and showed a proportionally greater loss of fat mass relative to lean mass against semaglutide alone.
Terns continues to evaluate opportunities for TERN-501 in metabolic diseases.
TERN Makes Encouraging Progress on Oncology Candidate
TERN-701, an oral, allosteric BCR-ABL tyrosine kinase inhibitor (TKI) inhibitor, is being evaluated for the treatment of chronic myeloid leukemia (CML). TERN-701 has demonstrated superior efficacy and safety compared to traditional active-site TKIs.
A phase I study, CARDINAL, in CML is ongoing and interim data from the initial CARDINAL dose escalation cohorts are expected in December 2024.
In April, Terns announced upbeat data from a phase I study of TERN-701 in healthy volunteers from the United States. Data indicated that TERN-701 can be administered once daily with or without food at doses that achieve clinically efficacious exposures.
According to the company, TERN-701 has the potential to be a differentiated BCR-ABL inhibitor with advantages over Novartis’ (NVS - Free Report) Scemblix (asciminib), including more convenient dosing to improve treatment options and fewer drug-drug interactions compared to asciminib.
In March 2024, the FDA granted orphan drug designation to TERN-701 for the treatment of CML.
The successful development of TERN-701 should be a significant boost for the company, given the market potential.
NVS’ Scemblix is approved in several countries, including the United States and the EU, to treat adults with Ph+ CML-CP who have previously been treated with two or more TKIs.
TERN’s Cash Position
The cash position, which also looks good, should enable TERN to fund its development programs. As of June 30, 2024, cash, cash equivalents and marketable securities were $225.3 million. Based on its current operating plan, Terns expects these funds to be sufficient to support its planned operating expenses into 2026.
TERN’s Zacks Rank & Other Stocks to Consider
Terns carries a Zacks Rank #2 (Buy) at present. A couple of other top-ranked stocks in the biotech sector are Krystal Biotech (KRYS - Free Report) and Exelixis (EXEL - Free Report) . While KRYS sports a Zacks Rank #1 (Strong Buy) at present, Exelixis carries a Zack Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Krystal Biotech’s earnings per share (EPS) estimate for 2024 has increased to $2.38 from $1.91 in the past 30 days. Shares of KRYS have surged 51.1% year to date.
In the past 30 days, EXEL’s EPS estimate for 2024 has moved north to $1.79 from $1.39. Year to date, shares of EXEL have risen 8.5%.
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Terns Surges 29.6% in Three Months: Will the Momentum Continue?
Shares of Terns Pharmaceuticals, Inc. (TERN - Free Report) , a clinical-stage biopharmaceutical company, rose 29.6% in the past three months compared with the industry’s growth of 7.4%. The stock outperformed the sector and the S&P 500 Index during the said time frame.
The outperformance can be attributed to encouraging pipeline progress of its obesity and oncology candidates.
TERN Outperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
Terns Targets Lucrative Obesity Market
Terns is developing a portfolio of small molecule product candidates in the oncology and obesity space. The pipeline contains three clinical-stage development programs, including an allosteric BCR-ABL inhibitor, a small molecule glucagon-like peptide-1 (GLP-1) receptor agonist, a THR-β agonist and a preclinical GIPR modulator discovery effort, prioritizing a GIPR antagonist nomination candidate.
The company is evaluating TERN-601, an oral, small-molecule GLP-1 receptor agonist for obesity.
A phase I first-in-human clinical trial in obese and overweight participants is progressing. Terns is on track to report top-line 28-day weight loss data this month. The primary endpoints include safety and tolerability assessments. Secondary and exploratory endpoints include PK and change in body weight over 28 days.
Obesity is a lucrative market that is in the spotlight following the stupendous success of Novo Nordisk’s Wegovy (semaglutide) among others.
Positive data readouts from the ongoing studies should keep investors’ interest afloat and maintain momentum for Terns.
Meanwhile, preparations are underway to rapidly progress to a 12-week, phase IIa study in obesity, following supportive data from the phase I study.
In June, Terns presented new preclinical data that supported the advancement of pipeline candidate TERN-501 in combination with a GLP-1 receptor agonist for obesity. The candidate, TERN-501, is an oral, thyroid hormone receptor-beta (THR-β) agonist.
Preclinical findings demonstrated that TERN-501, in combination with semaglutide, significantly enhanced weight loss and showed a proportionally greater loss of fat mass relative to lean mass against semaglutide alone.
Terns continues to evaluate opportunities for TERN-501 in metabolic diseases.
TERN Makes Encouraging Progress on Oncology Candidate
TERN-701, an oral, allosteric BCR-ABL tyrosine kinase inhibitor (TKI) inhibitor, is being evaluated for the treatment of chronic myeloid leukemia (CML). TERN-701 has demonstrated superior efficacy and safety compared to traditional active-site TKIs.
A phase I study, CARDINAL, in CML is ongoing and interim data from the initial CARDINAL dose escalation cohorts are expected in December 2024.
In April, Terns announced upbeat data from a phase I study of TERN-701 in healthy volunteers from the United States. Data indicated that TERN-701 can be administered once daily with or without food at doses that achieve clinically efficacious exposures.
According to the company, TERN-701 has the potential to be a differentiated BCR-ABL inhibitor with advantages over Novartis’ (NVS - Free Report) Scemblix (asciminib), including more convenient dosing to improve treatment options and fewer drug-drug interactions compared to asciminib.
In March 2024, the FDA granted orphan drug designation to TERN-701 for the treatment of CML.
The successful development of TERN-701 should be a significant boost for the company, given the market potential.
NVS’ Scemblix is approved in several countries, including the United States and the EU, to treat adults with Ph+ CML-CP who have previously been treated with two or more TKIs.
TERN’s Cash Position
The cash position, which also looks good, should enable TERN to fund its development programs. As of June 30, 2024, cash, cash equivalents and marketable securities were $225.3 million. Based on its current operating plan, Terns expects these funds to be sufficient to support its planned operating expenses into 2026.
TERN’s Zacks Rank & Other Stocks to Consider
Terns carries a Zacks Rank #2 (Buy) at present. A couple of other top-ranked stocks in the biotech sector are Krystal Biotech (KRYS - Free Report) and Exelixis (EXEL - Free Report) . While KRYS sports a Zacks Rank #1 (Strong Buy) at present, Exelixis carries a Zack Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Krystal Biotech’s earnings per share (EPS) estimate for 2024 has increased to $2.38 from $1.91 in the past 30 days. Shares of KRYS have surged 51.1% year to date.
In the past 30 days, EXEL’s EPS estimate for 2024 has moved north to $1.79 from $1.39. Year to date, shares of EXEL have risen 8.5%.