On November 12, 2024, Terns Pharmaceuticals Inc (TERN, Financial) released its 8-K filing, detailing the financial results for the third quarter ended September 30, 2024. Terns Pharmaceuticals Inc is a clinical-stage biopharmaceutical company focused on developing small-molecule therapies for non-alcoholic steatohepatitis (NASH) and other chronic liver diseases.
Performance Overview and Challenges
Terns Pharmaceuticals Inc reported a net loss of $21.9 million for the third quarter of 2024, a significant improvement from the $29.8 million loss in the same period last year. This reduction in net loss is crucial as it reflects the company's efforts to manage expenses while advancing its clinical programs. The company's cash position is robust, with cash, cash equivalents, and marketable securities totaling $372.8 million, bolstered by a $172.7 million equity raise in September. This financial strength is expected to support operations into 2028, providing a stable foundation for ongoing and future clinical trials.
Financial Achievements and Industry Implications
The company's financial achievements are noteworthy, particularly in the biotechnology sector, where substantial funding is essential for the lengthy and costly drug development process. The successful equity raise underscores investor confidence in Terns Pharmaceuticals' pipeline, which includes promising candidates like TERN-701 for chronic myeloid leukemia and TERN-601 for obesity. These developments are critical as they position the company to potentially address significant unmet medical needs.
Key Financial Metrics
For the third quarter of 2024, Terns Pharmaceuticals reported research and development (R&D) expenses of $15.2 million, slightly up from $14.8 million in the previous year. General and administrative (G&A) expenses saw a notable decrease to $9.8 million from $18.4 million, reflecting improved operational efficiency. The company's total assets increased to $378.2 million from $268.5 million at the end of 2023, while total liabilities remained relatively stable at $13.8 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $21.9 million | $29.8 million |
| R&D Expenses | $15.2 million | $14.8 million |
| G&A Expenses | $9.8 million | $18.4 million |
| Cash and Equivalents | $372.8 million | $263.4 million (Dec 2023) |
Corporate and Pipeline Developments
Terns Pharmaceuticals continues to advance its clinical pipeline with significant milestones. The company plans to initiate a Phase 2 clinical trial for TERN-601 in obesity by early Q2 2025, with initial data expected in the second half of 2025. Additionally, interim data from the Phase 1 CARDINAL trial of TERN-701 for chronic myeloid leukemia is anticipated in early December 2024. These developments are pivotal as they could lead to new treatment options for patients with limited alternatives.
Our progress in the third quarter was highlighted by the compelling topline results from our Phase 1 study of TERN-601, which demonstrated class-leading potential as a differentiated, once-daily, oral GLP-1R agonist for the treatment of obesity," stated Amy Burroughs, chief executive officer of Terns.
Analysis and Outlook
Terns Pharmaceuticals Inc's third-quarter results reflect a strategic focus on advancing its clinical programs while maintaining financial discipline. The company's strong cash position and reduced net loss are positive indicators of its ability to sustain operations and invest in its promising pipeline. As Terns Pharmaceuticals progresses with its clinical trials, the potential for significant breakthroughs in treating chronic diseases could enhance its market position and attract further investor interest.
Explore the complete 8-K earnings release (here) from Terns Pharmaceuticals Inc for further details.
