Tuesday, Oppenheimer raised the price target on Terns Pharmaceuticals (NASDAQ:TERN) to $20.00 from $17.00, while maintaining an Outperform rating on the stock. According to InvestingPro data, analyst targets for TERN now range from $7.50 to $30.00, with four analysts recently revising earnings estimates upward. The adjustment follows the release of promising interim data from the Phase 1 CARDINAL study of TERN-701, a drug under development for the treatment of Chronic Myeloid Leukemia (CML).
The study's three-month efficacy and safety results showed TERN-701's potential advantages over existing Tyrosine Kinase Inhibitors (TKIs). Notably, the drug demonstrated improved tolerability and a significant reduction of BCR-ABL1 transcripts in patients with high resistance and intolerance to current TKIs, including those who had previously been treated with asciminib. The company maintains strong financial flexibility with a current ratio of 32.99 and more cash than debt on its balance sheet.
The analyst from Oppenheimer expressed confidence in TERN-701's competitive profile and its potential application in earlier treatment settings. The drug's performance at the three-month mark has bolstered expectations for long-term Major Molecular Response (MMR) data, which is anticipated in the fourth quarter of 2025 following a planned dose expansion in the first half of the same year.
The revised price target to $20.00 reflects a more optimistic view of the drug's prospects, with the probability of success now set at 70%. TERN-701 is seen as a key asset for Terns Pharmaceuticals, with the analyst noting that the market has yet to fully recognize its value.
In other recent news, Terns Pharmaceuticals disclosed promising early results from its Phase 1 CARDINAL study of TERN-701, a drug candidate for chronic myeloid leukemia (CML). The study demonstrated encouraging safety and efficacy outcomes in heavily pretreated patients with relapsed or refractory CML. Furthermore, Terns Pharmaceuticals has appointed Heather Turner, former CEO of Carmot Therapeutics, to its Board of Directors.
In response to these developments, several analyst firms, including H.C. Wainwright, Oppenheimer, Mizuho (NYSE:MFG), and Jefferies, have adjusted their ratings and price targets for Terns Pharmaceuticals. Additionally, Terns Pharmaceuticals launched a $125 million stock offering led by Jefferies and TD Cowen to fund the development of key product candidates like TERN-701 and TERN-601.
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