Terns stock jumps as weight loss drug succeeds in early trial

Terns Pharmaceuticals (NASDAQ:TERN) shares jumped 34% Monday morning after its once-daily GLP-1 receptor agonist TERN-601 showed positive results for obesity treatment in an early-stage trial.

TERN-601 was well tolerated and showed statistically significant mean weight loss across all three doses evaluated (240mg, 500mg, 740mg) in the 28-day multiple-ascending dose trial, with maximum placebo-adjusted mean weight loss of 4.9% (p<0.0001) at the highest dose of 740mg.

Additionally, 67% of participants lost 5% or more of their baseline body weight at the top dose.

“We are delighted to demonstrate potent GLP-1R agonism with TERN-601 as its distinct drug properties allowed for sustained target coverage with once-daily dosing and the evaluation of doses up to 740 mg, while being tolerable,” noted Emil Kuriakose, chief medical officer of Terns. The company now plans to advance the drug into Phase 2 clinical trial in 2025.

Eli Lilly (LLY) and Novo Nordisk (NVO) currently dominate the GLP-1 receptor agonist drugs market for weight loss. One of the most eagerly anticipated new obesity drugs to potentially come to market that is not from Lilly or Novo is Amgen’s (AMGN) MariTide, which is both a GLP-1R agonist and a GIPR agonist.

Other candidates to look out for include Viking Therapeutics’ (VKTX) phase 2 VK2735, Altimmune’s (ALT) pemvidutide and Zealand Pharma (OTCPK:ZLDPF) and Boehringer Ingelheim’s survodutide.