Terns Pharmaceuticals Inc TERN-601 FIH Phase 1 Topline Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Etzer Darout - BMO Capital Markets - Analyst : Great. Thanks for the question and congrats on the update on today. So first question, you think about the dose-dependent 28-day mean weight loss. And at the 500 and the 740-mg doses, you continue to see this improving weight loss over time. And I guess thinking about maybe the Phase 2 trial, if you consider the duration of treatment that you're thinking about for that Phase 2 study in terms of being able to see fully how much weight loss you can ultimately get with the once-daily dose. And then also on the safety bit, given what you've learned today, your thoughts around maybe near-term dose drug combinations with 501 and others, given the safety profile that you've identified with 601 to date.

Question: Etzer Darout - BMO Capital Markets - Analyst : Yeah. And then just because you're continuing to see weight loss through the 28-day process is ways to maximize the ultimate weight loss that you could see at these higher doses. So it continues to improve through 28 days, I guess, based on the charts that you show.

Question: Etzer Darout - BMO Capital Markets - Analyst : Great. Thank you, and congrats again on the data.

Question: Eli Merle - UBS Equities - Analyst : Hey, guys. Thanks so much for taking my question and congratulations on the data. So you mentioned that you have no new dose exploration planned. I guess just given the strong tolerability despite the rapid titration, why not explore higher doses as you do a less rapid titration schedule in Phase 2? And then just a follow-up question on the combinations I think I've briefly mentioned in the last question. But just, I guess, how are you thinking about potential timelines for potentially studying the combination of your THR-beta and GLP-1? I think that preclinical data is interesting and shows some synergies, so I guess curious what you're thinking about in terms of that potential development strategy. Thanks.

Question: Eli Merle - UBS Equities - Analyst : Got it. Thanks.

Question: Akash Tewari - Jefferies - Analyst : Hey. Congrats on the data. It seems like the high plasma protein binding is a feature and not a bug here, which is really interesting. So just a couple for me. Given the rates of moderate GI AEs at the 740 dose, did you see the time course of these adverse events change throughout the study? Basically, did patients who had moderate adverse events see them alleviate by the end of the 28-day dosing period? And how concerned is your team about the rates of constipation at the 740 dose? Did you see exposure levels hit a steady state by the end of that 28-day trial or was there evidence of continued drug accumulation? Thank you.

Question: Akash Tewari - Jefferies - Analyst : Yeah. Yeah, it does. Thank you so much. Appreciate it.

Question: Ritu Barat - TD Cowen - Analyst : Hi, everyone. It's Ritu. Sorry for the dial-in mix-up this morning. Thanks for taking the question. Amy, I wanted to ask about your strategy, your and Emil's strategy, heading into Phase 2. As far as the number of doses, it seems like you sliced through this 3% to 5% weight loss at 28 days with a couple doses. But just given how the GLP-1 market is evolving and the different needs for potential future maintenance therapies versus just an emphasis on strength in weight loss, how are you thinking about the number of doses that you would take into a Phase 2a as a setup for potential pivotal trials? Thanks.

Question: Ritu Barat - TD Cowen - Analyst : Got it. And if I interpreted your answer to a prior question correctly, it sounds like you are open to speeding up some of the lower doses -- sorry, speeding up the titration of certain lower doses, but also potentially slowing down the 740, 750. So you have flexibility depending on dose.

Question: Ritu Barat - TD Cowen - Analyst : Understood. Thank you.

Question: Ritu Barat - TD Cowen - Analyst : Thanks.

Question: Graig Suvannavejh - Mizuho Securities - Analyst : Thank you. Good morning. Congrats on the data, and thanks for taking my questions. I had two, if I could. First on -- I believe it's slide 12 of your deck. I was very intrigued by the data around the greater than or equal to 3% weight loss and the greater than or equal to 5% weight loss, and realizing these are relatively small ends or numbers of patients. But any comments on how to put that in context with other competing GLT-1 programs? So that's my first question. And then my second question perhaps is a bit bigger picture, more philosophical, which is, just a view, the current view at least, the company has around where an oral GLP-1 might be best positioned. Is there even room for considering use for an oral GLP upfront versus, I think, the main view that I think the market has that an oral GLP-1 is really best suited for just a maintenance therapy? Thanks so much.

Question: Graig Suvannavejh - Mizuho Securities - Analyst : Thank you.

Question: Corinne Jenkins - Goldman Sachs - Analyst : Good morning, guys. Maybe a couple strategic questions from me or questions on the forward here. One, obviously, you'd like to move rapidly into the Phase 2 study. Can you remind us what you've done with respect to the top studies you'd need to complete in order to move forward with longer trials? And then, two, can you remind us in terms of the cash runway guidance and the funding that you currently have, where you stand with respect to executing against those studies on your current balance sheet versus traditional sources of capital? Thank you.

Question: Corinne Jenkins - Goldman Sachs - Analyst : Thank you.

Question: Corinne Jenkins - Goldman Sachs - Analyst : Okay, thank you.

Question: Eric Joseph - JPMorgan - Analyst : Hi. Good morning. Thanks for taking the questions. Maybe just a question on the planned Phase 2 trial. I guess, how should we be thinking about the length of that study? I guess you've seen some variation in Phase 2 studies ranging 12 to 26 weeks. I guess, any sense at this point that you could provide in terms of the duration of the study that you're contemplating? And then, secondly, just a housekeeping question, I'm wondering whether there's any additional formulation work to be done here, either going into the Phase 2 or later-stage trials. Thank you.

Question: Eric Joseph - JPMorgan - Analyst : Got it. Thanks for taking my questions.

Question: Josh Werman - Citizens JMP - Analyst : Hi. Thanks for taking my questions, and congratulations on the data. I just wanted to comment on the male and female split observed in this early Phase 1. So was that something that was intentional or do you foresee that trend evening out in Phase 2? And then secondly, could you specifically comment on the diarrhea? I know that's traditionally a difficult adverse event to manage. So how transient were those adverse events? Thank you.

Question: Josh Werman - Citizens JMP - Analyst : Great. Thank you. And just one more thing. I know we touched on the titration schedule a fair amount, but I just wanted to clarify if there were

Question: Josh Werman - Citizens JMP - Analyst : Yeah, going forward in the Phase 2. Are there more options than just those two primary step-ups? Or are you guys thinking about other potential timelines or durations between doses?

Question: Josh Werman - Citizens JMP - Analyst : Okay, great. Thank you guys so much, and congrats again on the data.