Terns Pharmaceuticals Reports Second Quarter 2025 Financial Results and Provides Corporate Updates

Rhea-AI Summary

Terns Pharmaceuticals (NASDAQ:TERN) reported Q2 2025 financial results and provided updates on its clinical programs. The company highlighted progress in two key areas: TERN-701 for chronic myeloid leukemia (CML) and TERN-601 for obesity.

Key financial metrics include $315.4 million in cash and equivalents, providing runway into 2028, and a net loss of $24.1 million for Q2 2025. The company plans to focus on oncology, particularly advancing TERN-701, while seeking partners for its metabolic assets.

Two major clinical readouts are expected in Q4 2025: efficacy and safety data from the Phase 1 CARDINAL trial of TERN-701, including 6-month major molecular response rates, and 12-week data from the completed Phase 2 FALCON trial of TERN-601 for obesity.

Positive

• Strong cash position of $315.4M providing runway into 2028
• TERN-701 showing compelling molecular responses in heavily pre-treated CML patients
• Phase 2 FALCON trial for TERN-601 completed enrollment ahead of Q4 data readout
• Previous TERN-601 Phase 1 trial demonstrated up to 5.5% weight loss over 28 days

Negative

• Increased net loss to $24.1M in Q2 2025 from $22.7M in Q2 2024
• R&D expenses increased to $20.4M from $18.4M year-over-year
• Company discontinuing investment in metabolic disease development beyond 2025

Insights

Biotechnology Analyst

Terns' solid cash position supports strategic pivot to oncology while awaiting two key Q4 readouts for CML and obesity programs.

Terns Pharmaceuticals' Q2 update reveals a strategic transformation into an oncology-focused company, prioritizing its TERN-701 BCR-ABL inhibitor for chronic myeloid leukemia while seeking partners for its metabolic assets. This strategic pivot represents a significant development for the company's future direction.

The CARDINAL trial of TERN-701 has reached an important milestone with rapid enrollment and advancement to dose expansion at 320mg and 500mg daily. Initial data already showed encouraging efficacy in heavily pretreated patients, including those who failed on asciminib (Scemblix). The upcoming Q4 data including 6-month major molecular response rates will be particularly significant as this endpoint directly correlates with what would be used in a pivotal trial.

For their obesity program, TERN-601 (oral GLP-1 receptor agonist) has completed enrollment in the Phase 2 FALCON trial with data expected in early Q4. The prior Phase 1 showed impressive weight loss of up to 5.5% in just 28 days with favorable tolerability despite rapid dose titration. The Phase 2 will evaluate multiple doses (250mg, 500mg, 750mg) with different titration schedules to optimize the dosing approach.

Financially, Terns maintains a strong position with $315.4 million in cash and equivalents as of June 30, providing runway into 2028. While net loss increased slightly to $24.1 million versus $22.7 million in Q2 2024, this is expected given the advancing clinical programs.

The company's decision to focus internal resources on oncology while seeking partners for its metabolic assets (including TERN-601, TERN-501, and GIPR modulators) represents a pragmatic approach to resource allocation. This positions Terns to potentially become a focused oncology company with a lead asset approaching pivotal studies, while still maintaining upside exposure to its obesity programs through partnerships.

Financial Analyst

Terns Pharmaceuticals' cash position remains robust at $315.4 million, providing runway into 2028 – a critical factor that gives them significant operational flexibility during this strategic pivot to oncology. This represents a 12% decrease from the $358.2 million reported at year-end 2024, with a quarterly burn rate of approximately $21.4 million.

The Q2 financial results show R&D expenses of $20.4 million, up slightly from $18.4 million year-over-year, reflecting continued investment in clinical programs. G&A expenses remained relatively stable at $7.0 million compared to $7.2 million in Q2 2024, indicating disciplined overhead management. The net loss of $24.1 million ($0.26 per share) represents a modest increase from $22.7 million ($0.31 per share) in the prior year period, though the per-share loss decreased due to a higher share count.

The strategic shift to focus internal resources on oncology while seeking partnerships for metabolic assets is financially prudent. By concentrating on TERN-701 for CML, the company can extend its cash runway while potentially creating additional value through partnerships that could bring in upfront payments, milestone fees, and royalties for their metabolic portfolio.

The decision not to invest in clinical development for metabolic disease beyond 2025 signals a clear prioritization strategy. This approach should allow for more efficient capital allocation while maintaining upside potential through partnerships for assets like TERN-601, which has shown promising early results for obesity.

With multiple catalysts expected in Q4 2025 for both oncology and obesity programs, Terns has positioned itself with sufficient capital to reach these important inflection points that could significantly impact company valuation, while maintaining flexibility for strategic decisions based on clinical outcomes.

Phase 1 trial of TERN-701 in chronic myeloid leukemia (CML) enrolling well; efficacy and safety data including 6-month major molecular response (MMR) rates expected in 4Q25

Phase 2 trial of TERN-601 for obesity completed enrollment; 12-week efficacy, safety and tolerability data expected in early 4Q25

Cash runway into 2028 focused on advancing CML program internally and partnering metabolic assets

Terns to host a TERN-701-focused educational webinar in September 2025

FOSTER CITY, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Terns Pharmaceuticals, Inc. (Terns or the Company) (Nasdaq: TERN), a clinical-stage biopharmaceutical company developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity, today reported financial results for the second quarter ended June 30, 2025, and provided corporate updates.

“The Terns team continues to advance our clinical programs with strong momentum, a clear focus on execution and a strong balance sheet,” said Amy Burroughs, chief executive officer of Terns. “We are on track for two key clinical readouts in CML and obesity by year-end. The fourth quarter data readout from the Phase 1 CARDINAL trial in 2L+ CML will enable comparison of the efficacy and safety results of TERN-701 with data from other Phase 1 CML trials, including asciminib’s.”

“We are focusing the company in oncology and on rapidly advancing TERN-701 towards a pivotal trial, with the goal of ultimately bringing a potential best-in-class therapy to people living with CML. The company seeks to partner our portfolio of potentially best-in-class metabolic assets and does not plan to invest in clinical development in metabolic disease beyond year end 2025.”

“We are encouraged by the rapid enrollment in the CARDINAL trial of TERN-701 in CML and initiation of dose expansion at the high end of the dose range based on the safety and efficacy data to date. The recently presented preclinical data at the European Hematology Association Congress (EHA) further supports TERN-701’s enhanced potency compared to asciminib across multiple clinically relevant BCR-ABL variants, including those with resistance mutations. These findings build upon previously reported data from the early dose escalation portion of the CARDINAL trial, which showed compelling molecular responses observed in heavily pre-treated patients, including those with treatment failure to asciminib. We look forward to sharing a CARDINAL data set in the fourth quarter that will provide a read through to the primary endpoint in a registrational trial – the achievement of a major molecular response at six months,” concluded Ms. Burroughs.

Recent Pipeline Developments and Anticipated Milestones

TERN-701: Oral, small-molecule next-generation allosteric BCR-ABL inhibitor for CML

• Terns plans to report efficacy and safety data from the Phase 1 CARDINAL trial in the fourth quarter of 2025, including 6-month MMR achievement rate, and to inform the potential for a best-in-class product profile and path to a pivotal trial
  • In April 2025, Terns enrolled the first patient in the dose expansion portion of the CARDINAL trial in which patients are randomized to one of two dose cohorts (320 mg or 500 mg QD) with up to 40 patients per arm
  • Doses were selected based on the totality of safety, efficacy, and pharmacokinetic/pharmacodynamic data from the dose escalation portion of the trial
• Terns to host an educational webinar in September 2025 detailing the unmet need in CML, how TERN-701 is building a potential best-in-class profile and relevant benchmarks for Phase 1 data. Webcast details will be available prior to the event
• Early interim data released in December 2024 from the TERN-701 dose escalation portion of the CARDINAL trial showed:
  • Compelling molecular responses in heavily pre-treated CML patients with high baseline BCR-ABL transcript levels, starting at the lowest doses
  • Encouraging safety profile with no dose limiting toxicities, adverse event-related treatment discontinuations or dose reductions at any dose
• In addition, supportive preclinical data presented at EHA 2025 highlighted greater potency of TERN-701 compared to asciminib against several resistance mutations in the active-site and allosteric domains

TERN-601: Oral, small-molecule glucagon-like peptide-1 receptor agonist (GLP1-RA) for obesity

• Key objectives of the Phase 2 FALCON trial in patients with obesity or overweight are to demonstrate competitive weight loss at 12-weeks, a class-leading safety/tolerability profile, and the simplest dose titration among GLP1-RA therapies
• The Phase 2 FALCON trial enrollment completed in the second quarter of 2025 and top-line 12-week data is expected in the early fourth quarter of 2025
  • U.S.-based, multicenter, randomized, double-blind, placebo-controlled trial to evaluate the efficacy and safety of TERN-601 as a treatment for obesity
  • Once-daily dosing with or without food in adults with obesity or overweight, without diabetes (BMI ranges from ≥30 to <50 kg/m² or ≥27 to <30 kg/m² with at least one weight-related comorbidity)
  • Patients randomized to one of four active cohorts (n=30 per cohort): 250 mg, 500 mg, 500 mg slow titration, 750 mg or placebo
  • Primary endpoint is percent change from baseline in body weight compared to placebo over 12 weeks
  • Secondary endpoints include safety, tolerability and proportion of patients achieving 5% weight loss or greater
• Doses and titration schema for Phase 2 were selected based on positive results from the Phase 1 trial, announced in September 2024, which demonstrated weight loss over 28-days up to 5.5% and favorable safety and tolerability despite rapid dose titration every three days
• In June 2025, Terns presented additional data from the completed 28-day Phase 1 trial of TERN-601 for obesity at the 85^th Annual American Diabetes Association Scientific Sessions, which further demonstrated its differentiated profile among oral GLP1-RAs
  

Pipeline and Partnering Programs

TERN-800 Series: Oral, small-molecule glucose-dependent insulinotropic polypeptide receptor (GIPR) modulators

• Terns is prioritizing its discovery efforts on nominating a GIPR antagonist development candidate based on in-house discoveries and growing scientific rationale supporting the potential of GLP-1 agonist/GIPR antagonist combinations for obesity. Terns is seeking a strategic partner to advance this program
  

TERN-501: Oral, thyroid hormone receptor-beta (THR-β) agonist

• Based on non-clinical studies, THR-β is a complementary mechanism to GLP-1, potentially providing broader metabolic and liver benefits in addition to increased weight loss. Terns is seeking a strategic partner to advance this program
  

Corporate Updates

Members of the Terns’ senior leadership team will participate in the Morgan Stanley 23^rd Annual Global Healthcare Conference, taking place in New York City, New York, September 8-10th, 2025.

Webcasts can be accessed at Terns’ IR website: http://ir.ternspharma.com

Second Quarter 2025 Financial Results

Cash Position: As of June 30, 2025, cash, cash equivalents and marketable securities were $315.4 million, as compared with $358.2 million as of December 31, 2024. Based on its current operating plan, Terns expects these funds will be sufficient to support its planned operating expenses into 2028

Research and Development (R&D) Expenses: R&D expenses were $20.4 million for the quarter ended June 30, 2025, as compared with $18.4 million for the quarter ended June 30, 2024

General and Administrative (G&A) Expenses: G&A expenses were $7.0 million for the quarter ended June 30, 2025, as compared with $7.2 million for the quarter ended June 30, 2024

Net Loss: Net loss was $24.1 million for the quarter ended June 30, 2025, as compared with $22.7 million for the quarter ended June 30, 2024

Financial Tables

Terns Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited; in thousands except share and per share amounts)
		Three Months Ended June 30,								Six Months Ended June 30,
			2025				2024				2025				2024
Operating expenses:
Research and development		$	20,353			$	18,352			$	39,073			$	36,939
General and administrative			7,030				7,185				15,737				14,044
Total operating expenses			27,383				25,537				54,810				50,983
Loss from operations			(27,383	)			(25,537	)			(54,810	)			(50,983	)
Interest income			3,350				2,876				6,993				6,058
Other income (expense), net			4				(14	)			(32	)			(26	)
Loss before income taxes			(24,029	)			(22,675	)			(47,849	)			(44,951	)
Income tax expense			(64	)			(61	)			(152	)			(158	)
Net loss		$	(24,093	)		$	(22,736	)		$	(48,001	)		$	(45,109	)
Net loss per share, basic and diluted		$	(0.26	)		$	(0.31	)		$	(0.52	)		$	(0.61	)
Weighted average common stock outstanding, basic and diluted			91,575,039				74,459,774				91,524,772				74,429,576

Terns Pharmaceuticals, Inc.
Selected Balance Sheet Data
(Unaudited; in thousands)
		June 30, 2025			December 31, 2024
Cash, cash equivalents and marketable securities		$	315,445		$	358,164
Total assets			320,415			363,929
Total liabilities			15,186			18,059
Total stockholders’ equity			305,229			345,870

About Terns Pharmaceuticals

Terns Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity. Terns’ pipeline contains three clinical stage development programs including an allosteric BCR-ABL inhibitor, a small-molecule GLP-1 receptor agonist, a THR-β agonist, and a preclinical GIPR modulator discovery effort, prioritizing a GIPR antagonist nomination candidate. For more information, please visit: www.ternspharma.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements about the Company within the meaning of the federal securities laws. Forward-looking statements include statements related to or in connection with expectations, timing and potential results of the clinical trials and other development activities of the Company and its partners, including with respect to the CARDINAL and FALCON trials, as well as enabling and non-clinical studies of the TERN-800 Series and TERN-501; the potential indications to be targeted by the Company with its small-molecule product candidates; the therapeutic potential of the Company’s small-molecule product candidates; the potential for the mechanisms of action of the Company’s product candidates to be therapeutic targets for their targeted indications; the potential utility and progress of the Company’s product candidates in their targeted indications, including the clinical utility of the data from and the endpoints used in the Company’s clinical trials; the Company’s clinical development plans and activities, including the results of any interactions with regulatory authorities on its programs; the Company’s expectations regarding the profile of its product candidates, including efficacy, tolerability, safety, metabolic stability and pharmacokinetic profile and potential differentiation as compared to other products or product candidates; the Company’s plans for and ability to continue to execute on its current development strategy, including potential combinations involving multiple product candidates; the process, timing or potential to establish a strategic partnership or similar arrangement for future development and/or potential commercialization of any of its product candidates; the potential commercialization of the Company’s product candidates; and the Company’s expectations with regard to its cash runway and sufficiency of its cash resources. All statements other than statements of historical facts contained in this press release, including statements regarding the Company’s strategy, future financial condition, future operations, future trial results, projected costs, prospects, plans, objectives of management and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “develop,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. The Company has based these forward-looking statements largely on its current expectations, estimates, forecasts and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. In light of the significant uncertainties in these forward-looking statements, you should not rely upon forward-looking statements as predictions of future events. These statements are subject to risks and uncertainties that could cause the actual results and the implementation of the Company’s plans to vary materially, including the risks associated with the initiation, cost, timing, progress, results and utility of the Company’s current and future research and development activities and preclinical studies and clinical trials. These risks are not exhaustive. For a detailed discussion of the risk factors that could affect the Company’s actual results, please refer to the risk factors identified in the Company’s SEC reports, including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statements for any reason.

Contacts for Terns

Investors
Kaytee Bock
investors@ternspharma.com

Media
Jenna Urban
CG Life
media@ternspharma.com

FAQ

What are the key Q2 2025 financial results for Terns Pharmaceuticals (TERN)?

Terns reported $315.4M in cash and equivalents, a net loss of $24.1M, R&D expenses of $20.4M, and G&A expenses of $7.0M. The company has cash runway into 2028.

When will Terns Pharmaceuticals release TERN-701 CML trial data?

Terns plans to release efficacy and safety data from the Phase 1 CARDINAL trial, including 6-month MMR achievement rates, in Q4 2025.

What are the details of TERN-601's Phase 2 FALCON obesity trial?

The Phase 2 FALCON trial is a US-based, randomized, double-blind study with four active cohorts (250mg, 500mg, 500mg slow titration, 750mg) and placebo. Top-line 12-week data is expected in early Q4 2025.

How much weight loss did TERN-601 demonstrate in Phase 1 trials?

In Phase 1 trials, TERN-601 demonstrated weight loss up to 5.5% over 28 days with favorable safety and tolerability despite rapid dose titration.

What is Terns Pharmaceuticals' strategic focus for 2025 and beyond?

Terns is focusing on oncology and advancing TERN-701 while seeking strategic partners for its metabolic assets. The company will not invest in clinical development in metabolic disease beyond 2025.