Hold Rating on Terns Pharmaceuticals Pending Clinical Trial Outcomes

H.C. Wainwright analyst Ed Arce maintained a Hold rating on Terns Pharmaceuticals (TERN – Research Report) today and set a price target of $5.50.

Ed Arce has given his Hold rating due to a combination of factors surrounding Terns Pharmaceuticals’ ongoing developments and clinical trials. The company is expected to reveal interim data from its CARDINAL study in the second half of 2024, which will demonstrate the potential of TERN-701 in treating Chronic Myeloid Leukemia (CML). The positive pharmacokinetic (PK) profile of TERN-701, with the possibility of once-daily dosing without the need for food restrictions, sets it apart from the current market competitor, Scemblix. However, the definitive efficacy data in CML patients that will inform the drug’s potential is still pending, which justifies a cautious approach.
Furthermore, TERN-601, another drug under Terns Pharmaceuticals’ development, is also expected to deliver top-line proof-of-concept data concerning weight loss in the second half of 2024. Preliminary safety analysis indicates that TERN-601 has been tolerated well, with no significant adverse events leading to discontinuation. Although these developments suggest potential, the Hold rating reflects the need for further evidence from upcoming clinical data to fully assess the drugs’ commercial viability and impact on the company’s financial outlook.

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Terns Pharmaceuticals (TERN) Company Description:

Terns Pharmaceuticals Inc is a clinical-stage biopharmaceutical company. It is developing a portfolio of small-molecule single-agent and combination therapy candidates for the treatment of non-alcoholic steatohepatitis, or NASH, and other chronic liver diseases.