Terns Pharmaceuticals announced that it will discontinue development of its experimental obesity drug, TERN-601, after Phase 2 trial results failed to demonstrate sufficient efficacy and raised safety concerns.
The 12-week, randomized, placebo-controlled study evaluated TERN-601, a once-daily oral GLP-1 receptor agonist. Results showed a maximum placebo-adjusted weight loss of 4.6% at the highest dose, but nearly 12% of participants discontinued due to adverse events, primarily gastrointestinal issues such as nausea and vomiting. Three participants experienced asymptomatic, reversible grade 3 liver enzyme elevations, two of which were confirmed as drug-related through biopsy.
Chief Executive Officer Amy Burroughs stated that the findings “did not meet the threshold for a truly differentiated oral GLP-1RA therapy—one that ensures safety, tolerability, and efficacy.” Company shares fell over 14% in after-hours trading following the announcement.
Terns plans to halt all investment in metabolic diseases and shift its focus toward oncology, specifically TERN-701, its allosteric BCR-ABL inhibitor in development for chronic myeloid leukemia. The company expects to release new data from TERN-701’s Phase 1 CARDINAL trial later this quarter.
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