H.C. Wainwright analyst Andrew Fein has maintained their neutral stance on TERN stock, giving a Hold rating yesterday.
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Andrew Fein has given his Hold rating due to a combination of factors surrounding Terns Pharmaceuticals’ recent developments. The company reported underwhelming results from its Phase 2 trial of TERN-601, an oral GLP-1 therapy for obesity, which showed a maximum placebo-adjusted weight loss of only 4.6%. This falls short of the competitive threshold of 6% or greater weight loss needed to stand out in the crowded GLP-1 market. Additionally, safety concerns arose with two patients experiencing drug-related liver toxicity, prompting Terns to halt further investment in this metabolic disease space.
Instead, Terns is shifting its focus to TERN-701 for chronic myeloid leukemia, with upcoming data from the Phase 1 CARDINAL trial. However, questions remain about TERN-701’s competitive positioning and differentiation in the CML landscape, particularly against established treatments like Scemblix. The early trial results for TERN-701 have shown some promise, but the data is still immature compared to peers. Given these uncertainties and the competitive dynamics, Fein’s Hold rating reflects a cautious stance as the company navigates these challenges.
Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TERN in relation to earlier this year.