De-Risked CML Lead Asset, Robust Trial Strategy, and $1B Cash Runway Underscore Buy Rating on Terns Pharmaceuticals

BMO Capital analyst Evan Seigerman has maintained their bullish stance on TERN stock, giving a Buy rating today.

Evan Seigerman has given his Buy rating due to a combination of factors tied to both Terns Pharmaceuticals’ lead program and its broader platform. He views TERN-701 as a highly promising therapy for CML, supported by Phase 1/2 data showing strong and durable molecular responses in second-line and later patients, which underpins best-in-class potential. The outlined 2026 catalysts—finalizing Phase 3 dosing, further regulatory clarity at the end-of-Phase 2 meeting, expanded patient datasets, and longer-term efficacy and safety readouts—are expected to refine the development path and reduce clinical risk. Planned pivotal trials in both second-line-plus and first-line CML, including robust comparator arms against current standard TKIs and potentially asciminib, are designed to clearly demonstrate clinical differentiation and support long-term value creation.
In addition, Seigerman emphasizes the company’s exceptionally strong balance sheet, with roughly $1 billion in cash and funding visibility through 2031, which materially lowers financing risk during an intensive clinical development period. This financial cushion is particularly important against a backdrop of regulatory uncertainty and sector-wide pressure on smaller biotechs. Beyond TERN-701, he highlights confidence in Terns’ small-molecule discovery platform, which has already produced clinically validated assets across multiple indications, suggesting additional upside from pipeline progress. Taken together, the combination of de-risking clinical milestones, sound trial strategy, and substantial cash runway supports his constructive stance and underlies the Buy recommendation on TERN shares.