Terns Pharmaceuticals Shifts Focus to Oncology, Seeks Partners for Metabolic Assets

Terns Pharmaceuticals, a California-based biotech company, has announced a strategic pivot towards oncology, marking a significant shift in its pipeline focus. The company plans to cease investments in metabolic disease clinical development by the end of 2025, setting the stage for potential partnerships or deals for its metabolic assets.

Oncology Takes Center Stage

At the heart of Terns' new strategy is TERN-701, the company's chronic myeloid leukemia (CML) asset. CEO Amy Burroughs emphasized the company's commitment to advancing this oncology candidate, stating, "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."

Terns believes it can navigate TERN-701 through a pivotal trial and potentially to market without external support, underscoring the company's confidence in its oncology program.

Metabolic Assets Up for Grabs

While pivoting to oncology, Terns is not abandoning its metabolic disease portfolio. Instead, the company is actively seeking partners for these assets, which include:

1. TERN-601: An oral small molecule GLP-1 receptor agonist for obesity, currently in phase 2 trials.
2. TERN-501: A metabolic dysfunction-associated steatohepatitis candidate, previously deprioritized.
3. TERN-800 series: Focused on oral GIPR modulators with potential for combination with GLP-1 agonists.

Burroughs noted, "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."

TERN-601: A Promising Obesity Candidate

Among Terns' metabolic assets, TERN-601 stands out as a potential competitor in the increasingly crowded obesity treatment landscape. The company is set to release 12-week data from a phase 2 trial early in the fourth quarter, which could provide crucial insights into its efficacy and tolerability compared to competitors like Eli Lilly's orforglipron.

Terns executives have indicated that partnering will be essential for TERN-601's phase 3 development, citing the substantial resources required for late-stage clinical trials and commercialization in the obesity market. The company estimates that R&D costs could exceed $500 million, with commercialization requiring a sales force capable of targeting general practitioners.

As Terns Pharmaceuticals navigates this strategic shift, the pharmaceutical industry watches closely to see how its oncology focus and potential partnerships for metabolic assets will reshape the company's future in the competitive biotech landscape.