Why Is Terns Pharmaceuticals Stock Trading Lower After Obesity Trial Data?

Core Insights - Terns Pharmaceuticals Inc. announced topline results from its FALCON Phase 2 trial of TERN-601, an oral GLP-1 receptor agonist aimed at treating obesity in adults without diabetes [1][2]. Weight Loss Results - At a 250 mg dose, the placebo-adjusted weight loss was 1.8%, which was not statistically significant (p=0.056) [3]. - At a 500 mg slow titration, weight loss was approximately 3.6%, and at a 500 mg dose, it was around 4.6% [3]. - Weight loss at a 750 mg dose was about 3% [3]. Safety and Tolerability - Among the 134 participants who received TERN-601, 11.9% discontinued treatment and 8.2% had dose modifications due to adverse events (AEs), primarily gastrointestinal [4]. - The most common gastrointestinal AEs included nausea (56%), vomiting (26.9%), constipation (11.9%), and diarrhea (9.7%), with a dose-related occurrence [4]. - Liver function tests (LFTs) remained stable during the treatment period, although three participants experienced grade 3 LFT elevations, with two cases consistent with drug-induced liver injury (DILI) [5][6]. Market Reaction - Following the announcement, Terns Pharmaceuticals shares fell by 3.33%, trading at $7.85 [6].