Novo Nordisk, Eli Lilly news positive for Terns Pharmaceuticals, says Mizuho

Mizuho notes that Terns Pharmaceuticals’ (TERN) shares are trading higher on Tuesday based on latest developments from the two biggest players in the obesity landscape, namely Novo Nordisk (NVO) and Eli Lilly (LLY). Recall that Terns is developing TERN-601, which is a GLP-1R agonist for the treatment of obesity. While the obesity landscape is becoming increasingly crowded, ‘601 is an oral, small molecule-based candidate, differentiating from semaglutide, which is an injectable. Mizuho believes the data from Novo highlights the major health benefits yielded by GLP-1R agonists, which more significantly should help support a more persuasive and compelling argument for reimbursement, where the firm thinks the current cost of Wegovy is $1,350 per month. Overall, the news from Novo and Lilly are positive for Terns and 601, which is still only a preclinical asset, Mizuho adds. The firm has a Buy rating on Terns’ shares with a price target of $16.