Terns Pharmaceuticals (TERN) FY Conference Transcript

Summary of Terns Pharmaceuticals (TERN) FY Conference Call - June 09, 2025 Company Overview - Terns Pharmaceuticals is a small molecule company founded in 2017, focusing on developing innovative therapies for chronic diseases, particularly chronic myeloid leukemia (CML) and obesity [3][4] Key Value Drivers - The company anticipates significant data readouts in Q4 2025 for two best-in-class medicines: - A BCR ABL inhibitor for CML - An oral GLP-1 receptor agonist for obesity [4] Chronic Myeloid Leukemia (CML) Program - Market Size: The CML market includes approximately 100,000 patients in the G7, with 17,000 new diagnoses annually. The market is expected to triple by 2040 [9] - Unmet Needs: Current therapies have limitations in tolerability and safety. Terns aims to improve on these aspects with its allosteric inhibitor, TURN-701 [5][10] - Target Product Profile: TURN-701 aims for better efficacy, safety, and convenience compared to existing therapies, with a once-daily dosing regimen without food restrictions [10][11] - Clinical Data: Initial data shows a 50% cumulative major molecular response (MMR) rate, with no dose-limiting toxicities observed in trials [22][23] - Upcoming Data: A robust dataset with six-month MMR is expected in Q4 2025, with over 40 patients involved [31][32] Efficacy and Safety - TURN-701 is designed to have superior pharmacokinetics (PK) and target coverage compared to osiminib, the current standard [19][29] - The drug does not inhibit CYP3A4, reducing drug-drug interaction risks, which is crucial for the older patient population typically affected by CML [13][14] Obesity Program - The obesity market is seen as still developing, with limited competition for oral drugs. Terns believes its oral GLP-1 receptor agonist, TURN-601, can differentiate itself through improved tolerability and simpler titration [55][56] - Tolerability: TURN-601 aims to achieve competitive weight loss with a better tolerability profile, expecting to see potentially half the rate of nausea and vomiting compared to existing treatments [67] - Partnership Strategy: Terns plans to seek a partnership for TURN-601 post-trial, focusing on capital allocation and leveraging its resources for the CML program [72] Financial Outlook - The company has sufficient cash to fund operations into 2028, focusing on advancing the CML program and completing the Phase IIa study for TURN-601 [73] Discovery Efforts - Terns continues to work on its GPRA antagonist program, which is an area of interest for future development [74] Conclusion - Terns Pharmaceuticals is positioned to make significant advancements in the treatment of CML and obesity, with promising data expected in the near future. The company is strategically focused on partnerships and efficient capital allocation to maximize its development efforts.