Terns Pharmaceuticals Secures $125M After Promising Obesity Drug Data

Terns Pharmaceuticals has announced a $125 million stock offering, following the release of promising Phase I data for TERN-601, their oral candidate aimed at obesity. This significant move positions Terns to challenge major pharmaceutical players in the obesity treatment market.

The funds from this offering are intended to support Phase II trials of the GLP-1 agonist, which could potentially transform obesity treatment. Jefferies analysts praised the early data as “surprisingly good,” despite some adverse events, such as vomiting, with the drug showing low discontinuation rates. The announcement has led to a nearly 25% surge in Terns’ stock.

While competitors like Lilly and Pfizer have already made strides with their oral obesity treatments—Lilly’s candidate achieving a 3.9% weight loss and Pfizer’s danuglipron resulting in a 5.2% loss—Terns aims to match or surpass these results. The company is also advancing other projects, including a new drug for chronic myeloid leukemia.

With this major capital raise and encouraging initial results, Terns Pharmaceuticals is set to make significant advances in the competitive obesity treatment field. Their ambitious efforts underscore a strong commitment to advancing their pipeline and potentially transforming patient outcomes in obesity and other metabolic disorders.