On Wednesday, Mizuho Securities reiterated its Outperform rating on shares of Terns Pharmaceuticals (NASDAQ:TERN) with a consistent price target of $10.00. The firm's position follows a virtual investor event held by TERN on Tuesday, discussing TERN-701, a third-generation tyrosine kinase inhibitor for the treatment of chronic myeloid leukemia (CML).
The event aimed to manage expectations ahead of the first interim Phase 1 CARDINAL study data for TERN-701, anticipated in December. While the firm acknowledged mixed feelings after the event, noting that the upcoming December data might not provide a definitive understanding of TERN-701's profile, their overall enthusiasm for the drug remains strong.
The firm also highlighted the stock's recent performance, pointing out that TERN's shares fell by 6% on Tuesday, in contrast to the XBI, which remained unchanged. Despite this dip, Mizuho recommends purchasing TERN shares, especially in light of the forthcoming Phase 1 data for another of the company's drugs, TERN-601—an oral GLP-1 receptor agonist for obesity—expected next month.
If the forthcoming data for TERN-601 prove to be positive and confirm a competitive profile for the drug, Mizuho anticipates a significant positive reaction in the stock's value. This potential for a meaningful inflection in the stock's trajectory is a key reason for the firm's continued endorsement of an Outperform rating for Terns Pharmaceuticals.
Terns Pharmaceuticals has reported significant developments. The biopharmaceutical company announced the appointment of Elona Kogan as its new chief legal officer, bringing over two decades of experience in the life sciences sector. This executive transition is part of Terns' strategic development and pipeline advancement.
Terns Pharmaceuticals has made progress in its ongoing Phase 1 study of TERN-701, a potential therapy for chronic myeloid leukemia. Interim findings suggest the drug can be administered once daily with or without food, showing no significant differences in plasma exposure at 80 mg doses.
Terns Pharmaceuticals has secured the extension of its office lease in Foster City, California, through 2027. The company will continue utilizing the space for general office and administrative purposes. The lease extension reflects Terns Pharmaceuticals' operational stability and long-term planning.
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