2023-05-31 13:08:31 ET
Roth MKM has started coverage of Terns Pharmaceuticals ( NASDAQ: TERN ) with a buy rating as it sees potential with the company's assets for oncology, nonalcoholic steatohepatitis ( NASH ), and obesity.
The firm has a $23 price target (~117% upside based on Tuesday's close).
The company's lead candidate, TERN501, is in phase 2 for NASH. TERN701 is in phase 1 for chronic myeloid leukemia.
Of TERN 501, Roth said that the candidate is a "potentially best-in-class THR? agonist." The firm projects a US launch in 2029 with peak revenue of $3.4B in 2035.
Initial phase 1 results on TERN701 from a Chinese trial from partner Hansoh are expected mid year. A US phase 1 trial is projected to start in the second half of the year.
Roth projects a US launch of the asset in 2029 with $1.9B in peak revenue in 2035.
TERN601, an oral glucagon-like peptide-1 receptor agonist (GLP-1 RA), also has the team excited, noting that a phase 1 dosing study is set to begin in the second half of the year with a data readout in H1 2024.
Roth sees a US launch of TERN601 in 2029 with $3.5B in peak revenue in 2035.
More on Tern Pharmaceuticals
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Terns Pharma a buy at Roth on metabolic diseases, oncology assets