Promising Potential of TERN-701: A Strong Contender in the CML Treatment Landscape

William Blair analyst Andy Hsieh has maintained their bullish stance on TERN stock, giving a Buy rating yesterday.

Andy Hsieh has given his Buy rating due to a combination of factors that highlight the promising potential of Terns Pharmaceuticals’ TERN-701. The recent presentation at the American Society of Hematology annual meeting showcased TERN-701’s remarkable clinical profile in treating chronic myeloid leukemia (CML). This investigational agent has demonstrated significant improvements in both efficacy and safety, offering patients the convenience of daily dosing without food restrictions. Such attributes position TERN-701 as a strong contender against existing treatments like Scemblix, with the potential to disrupt the CML treatment landscape, which has a substantial global market.
From an efficacy standpoint, TERN-701’s major molecular response (MMR) achievement rate of 64% is notably higher than that of both approved and investigational competitors, which range from 24% to 32%. This consistent efficacy, even among patients with high disease burdens, underscores the drug’s potential to address unmet needs in difficult-to-treat cases. Additionally, TERN-701 has shown promise in salvaging patients who previously did not respond to or could not tolerate Scemblix, further supporting the bullish outlook on the stock. These compelling clinical outcomes and the potential market impact are key reasons behind Andy Hsieh’s Buy rating for Terns Pharmaceuticals.

In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $33.00 price target.

Based on the recent corporate insider activity of 15 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.