Terns Pharmaceuticals Inc (TERN) Reports Q3 2023 Financials and Corporate Progress
TERN-701 Phase 1 clinical trial for CML to commence with patient screening in December 2023.
TERN-601 Phase 1 clinical trial for obesity underway, with top-line data expected in H2 2024.
Positive Phase 2a DUET trial results for TERN-501 suggest best-in-class potential for NASH treatment.
Cash reserves of $267 million projected to fund operations into 2026.
On November 14, 2023, Terns Pharmaceuticals Inc (NASDAQ:TERN) released its 8-K filing, announcing third-quarter financial results and providing updates on its corporate and clinical developments. The company, which focuses on small-molecule product candidates for oncology, obesity, and non-alcoholic steatohepatitis (NASH), is gearing up for a "data-rich 2024" with anticipated clinical trial readouts.
Corporate and Clinical Highlights
Dr. Erin Quirk, president and head of research and development at Terns, expressed confidence in the company's progress, citing the opening of U.S. Investigational New Drug (IND) applications and the release of Phase 2 data for TERN-501 from the DUET study in NASH patients. The company has dosed the first participant in the Phase 1 trial of TERN-601 for obesity and is preparing to initiate the Phase 1 trial of TERN-701 for chronic myeloid leukemia (CML).
Financial Performance
The company reported a cash position of $266.6 million as of September 30, 2023, a slight decrease from $283.1 million at the end of 2022. This strong cash reserve is expected to support Terns' planned operating expenses well into 2026. Research and Development (R&D) expenses increased to $14.8 million for the quarter, up from $12.2 million in the same period last year. General and Administrative (G&A) expenses saw a significant rise to $18.4 million, compared to $5.1 million in Q3 2022. The net loss for the quarter was $29.8 million, a substantial increase from the $16.8 million loss reported in the third quarter of the previous year.
Analysis of Financial Tables
The condensed consolidated statements of operations reveal a detailed view of the company's financial activities. The increase in R&D expenses reflects ongoing investment in the company's clinical programs, while the rise in G&A expenses is likely due to expanded corporate activities and possibly the search for a new chief executive officer following the departure of Senthil Sundaram. The net loss per share for the quarter stood at $0.42, compared to $0.44 in Q3 2022, which can be attributed to the increased operating expenses outpacing the growth in interest income.
The balance sheet data indicates a solid financial position with total assets of $271.7 million and total liabilities of just $13.3 million, resulting in a strong equity base of $258.4 million. This robust financial foundation supports the company's strategic initiatives and development programs.
Looking Ahead
Terns Pharmaceuticals Inc (NASDAQ:TERN) is poised for significant clinical milestones in the coming year, with interim top-line data from the TERN-701 and TERN-601 trials expected in the second half of 2024. The positive data from the Phase 2a DUET trial of TERN-501 for NASH treatment adds to the company's momentum, suggesting potential for a best-in-class therapy. With a substantial cash reserve and a clear strategic focus, Terns is well-positioned to advance its clinical pipeline and address unmet medical needs in oncology and metabolic diseases.
For more detailed information on Terns Pharmaceuticals Inc (NASDAQ:TERN)'s financial results and corporate updates, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Terns Pharmaceuticals Inc for further details.
This article first appeared on GuruFocus.
