Terns Shares Climb as Investigational GLP-1 Pill Spurs 5% Weight Loss After 28 Days

Terns Shares Climb as Investigational GLP-1 Pill Spurs 5% Weight Loss After 28 Days

Terns Pharmaceuticals has reported promising results from their oral GLP-1R agonist, indicating an average weight reduction of nearly 5% within just 28 days compared to a placebo in an initial clinical trial. Following this news, the biotech firm’s stock experienced a significant surge of over 18% in pre-market trading on Monday.

Analysts from BMO Capital Markets described the findings as “compelling” in a report released on Monday. They benchmarked the Phase I outcomes of TERN-601 against oral alternatives, including Eli Lilly’s orforglipron, which exhibited a 3.9% reduction in body weight during a comparable study, as well as Pfizer’s danuglipron, which resulted in a 5.2% weight loss.

The Phase I trial included adults classified as obese or overweight, exploring three different doses. The top dose’s results showed a placebo-adjusted mean weight drop of 4.9%, with participants taking TERN-601 once daily, as stated in a press release on Monday. Notably, 67% of those in the highest dose category lost at least 5% of their initial body weight.

“As we prepare operationally, we anticipate advancing this promising candidate into Phase II clinical trials in 2025,” expressed Terns CEO Amy Burroughs in the statement.

The trial data indicated that TERN-601 was generally well tolerated, with no treatment-related interruptions, dose reductions, or terminations noted. Any gastrointestinal issues reported were described as mild to moderate, consistent with the broader category of GLP-1R agonists. Furthermore, no significant changes in liver enzyme levels were observed.

“These results highlight TERN-601’s potential to emerge as a leading GLP-1R agonist based on its early indicators of effectiveness, tolerability, and the potential for manufacturing scalability,” Burroughs added.

Terns’ oral treatment possesses a competitive advantage in the weight-loss drug market due to its once-daily dosing regimen, a challenging aspect for some rival products, according to BMO. Pfizer halted danuglipron’s twice-daily dosing in December 2023 due to high dropout rates, only to reintroduce it in July with a once-daily schedule. Eli Lilly’s orforglipron is currently being evaluated with a similar dosing frequency.

BMO noted, “The profile of TERN-601 supports its development as a standalone treatment or as part of combination therapies.” The company might consider its pipeline for potential combinations involving TERN-501 or TERN-800, they suggested.

Outcomes from the TERN-601 Phase I research will be shared at a forthcoming medical conference.