Terns Pharmaceuticals(TERN) - 2025 Q2 - Quarterly Results

Overview and Strategic Focus Terns Pharmaceuticals reported strong Q2 2025 clinical momentum, strategically focusing on oncology and projecting cash runway into 2028 - Key clinical data readouts are expected in the fourth quarter of 2025 for two main programs: TERN-701 in CML (including 6-month MMR rates) and TERN-601 for obesity (12-week efficacy and safety data)[1] - The company is strategically focusing its resources on the oncology program (TERN-701) with the goal of advancing it to a pivotal trial[2] - Terns plans to partner its portfolio of metabolic assets and will not invest in their clinical development beyond year-end 2025[2] - The company's cash runway is projected to be sufficient to fund planned operating expenses into 2028[1][8] Pipeline Developments and Anticipated Milestones Terns' lead candidates, TERN-701 (CML) and TERN-601 (obesity), are advancing with Q4 2025 data readouts anticipated TERN-701 (CML Program) TERN-701's Phase 1 CARDINAL trial for CML is progressing with dose expansion, expecting 6-month MMR data in Q4 2025 - The company plans to report efficacy and safety data from the Phase 1 CARDINAL trial in Q4 2025, including the 6-month MMR achievement rate[5] - The dose expansion portion of the CARDINAL trial began in April 2025, with patients randomized to 320 mg or 500 mg once-daily (QD) cohorts[5] - Preclinical data presented at EHA 2025 highlighted greater potency of TERN-701 compared to asciminib against several resistance mutations[2][5] TERN-601 (Obesity Program) TERN-601's Phase 2 FALCON trial for obesity completed Q2 2025 enrollment, with 12-week data expected in early Q4 2025 - The Phase 2 FALCON trial completed enrollment in Q2 2025, with top-line 12-week data expected in early Q4 2025[5] - The primary endpoint of the FALCON trial is the percent change from baseline in body weight compared to placebo over 12 weeks[5] - Previous Phase 1 results demonstrated weight loss of up to 5.5% over 28 days with favorable safety and tolerability[5] Pipeline and Partnering Programs Terns seeks strategic partners for its metabolic programs, prioritizing GIPR antagonist and THR-β agonist candidates - Terns is prioritizing its discovery efforts on a GIPR antagonist development candidate (TERN-800 Series) for potential combination therapies in obesity[6] - The company is seeking a strategic partner to advance both the TERN-800 series (GIPR modulator) and TERN-501 (THR-β agonist) programs[6][7] Second Quarter 2025 Financial Results Terns reported a net loss for Q2 2025, driven by increased R&D expenses, while maintaining a strong cash position into 2028 Key Financial Metrics (Millions USD) | Financial Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | | :--- | :--- | :--- | | R&D Expenses | $20.4 | $18.4 | | G&A Expenses | $7.0 | $7.2 | | Net Loss | $(24.1) | $(22.7) | | Cash Position (as of June 30, 2025) | $315.4 | N/A | - Cash, cash equivalents, and marketable securities were $315.4 million as of June 30, 2025, which is expected to fund planned operating expenses into 2028[8] Financial Tables This section presents Terns Pharmaceuticals' unaudited condensed consolidated statements of operations and selected balance sheet data as of June 30, 2025 Condensed Consolidated Statements of Operations Terns reported an increased net loss for Q2 2025 compared to the prior year, primarily driven by higher research and development expenses Condensed Consolidated Statements of Operations (Thousands USD, except per share data) | Metric | Three Months Ended June 30, 2025 (Thousands USD) | Three Months Ended June 30, 2024 (Thousands USD) | | :--- | :--- | :--- | | Total operating expenses | $27,383 | $25,537 | | Net loss | $(24,093) | $(22,736) | | Net loss per share, basic and diluted | $(0.26) | $(0.31) | Selected Balance Sheet Data As of June 30, 2025, Terns reported its cash, cash equivalents, marketable securities, and total stockholders' equity balances Selected Balance Sheet Data (Thousands USD) | Metric | June 30, 2025 (Thousands USD) | December 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $315,445 | $358,164 | | Total assets | $320,415 | $363,929 | | Total stockholders' equity | $305,229 | $345,870 |