Terns Pharmaceuticals: GLP-1 Obesity Drug Cut Warrants Downgrade To 'Hold' Rating

2025-10-22 16:11:52 ET

The last time I wrote about Terns Pharmaceuticals ( TERN ), it was with respect to a Seeking Alpha article entitled " Terns Pharmaceuticals: Obesity Advancement Continues With Other Q1 2025 Program Catalyst ". With respect to this article, I noted that the company was able to report positive 28-day data from its phase 1 study targeting obesity patients with TERN-601. Specifically, it used the highest dose of 740 mg QD (once daily) and helped patients to lose 4.9%. The truth is that the final data didn't live up to expectations because the goal was to reach a certain threshold to be differentiated compared to all the other GLP-1 receptor agonists in clinical development. To that end, it fell into two traps in terms of the development of this specific candidate. The first problem is that the 28-day weight loss observed in the phase 1 study didn't translate over to the phase 2 study targeting obesity patients....

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