Terns Pharmaceuticals Inc at Goldman Sachs Healthcare Conference Transcript

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

Question: Corinne Jenkins - Goldman Sachs - Analyst : Yeah, absolutely. So NASH is top of mind these days with a slew of successful readouts over the past year. So maybe you could help us understand what you expect to see from DUET in terms of number of patients, the different cohorts, and what you view as successful outcomes for that study?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Okay. So we've talked about a couple of later stage success stories in NASH. And so as you think about that and then the translation from noninvasive test to the later-stage trials how do you think about what that means for the bar that you need to hit for the primary endpoint for example?

Question: Corinne Jenkins - Goldman Sachs - Analyst : And you're starting to get to this. But obviously, THR-Beta stands to be potentially the first approved drug in NASH. And so within that class, how do you think about where TERN-501 could be differentiated?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. As you think about the FXR agonist and you begin to mention the combination program there, that obviously was the first class of therapy to show positive Phase 3 results, but it has run into some challenges more recently. So how does TERN-101 compare to other agents within the class? And do you expect it to be able to overcome some of those issues?

Question: Corinne Jenkins - Goldman Sachs - Analyst : So given the fact that we'll have both monotherapy and combination results here in a couple of months, how do you think about what you would need to see to move forward with the monotherapy or with combination or perhaps both?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. We've also seen recent data that shows fibrosis improvement as early as 24 weeks at the Akero program. How do you think about the implications for the broader market of NASH therapeutics? And do you think that's a class effect? Do you think it has to do with the amount of liver fat normalization? And how do you think about that rapid improvement in fibrosis?

Question: Corinne Jenkins - Goldman Sachs - Analyst : You mentioned GLP-1s and potentially using it in combination. I guess, what do you think about the role of those agents in NASH from here?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Makes sense. So ahead of (inaudible) launch in this indication in the coming year or two, how do you think about some of the remaining questions on realizing the commercial potential of this market? And what do you expect to see from the industry in the next couple of years to get there?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Yes. Understood. As you think about before we move on from NASH just like the current state of play for noninvasive test, where do you think we are today? And how will this factor into your additional studies?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Okay, great. So I guess maybe final question on this. Post these Phase 2 wo results, what should we expect in terms of next steps?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. Okay, maybe shifting gears to CML, which you mentioned first. First, could you give us a quick refresher on that program and perhaps also what we saw at ASCO last week?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. So then as we look forward, do you plan to initiate your own study? When should we expect to see clinical data either from Hansoh or from yourselves, and how should we think about what that looks like?

Question: Corinne Jenkins - Goldman Sachs - Analyst : If you think about the advantages that Hansoh gives at your synergies between their study and yours, what are some of the things that you're looking to see out of that program that helps inform your own?

Question: Corinne Jenkins - Goldman Sachs - Analyst : And you mentioned potential avenues of differentiation, but perhaps we can double-click on those. And then also when should we expect to see them start to play out in the clinic?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. We do anticipate a number of generic entrants in the CML market. So how do you think that shifts the landscape, if at all, for a program particularly allosteric inhibitor?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Right. Now obviously pending the dose escalation study, what do you view as next steps for this program in terms of really dialing out that differentiation? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 13, 2023 / 3:40PM, TERN.OQ - Terns Pharmaceuticals Inc at Goldman Sachs Healthcare Conference

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. What about combination approaches? We talked to some physicians recently. That's something they highlighted as being excited about. So how do you think about the potential for a combination approach and why is that important?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. I guess when would potential combinations come into the development strategy?

Question: Corinne Jenkins - Goldman Sachs - Analyst : And maybe shifting gears again to the obesity franchise. As you think about, I mean, there has been some momentum recently around oral GLP-1 agonist, how do you see the landscape and potential for differentiation with your program?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. And then there's somewhat of an ongoing debate around biased versus unbiased agonists. What's the stand there? And where does your drug fit?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. You mentioned studies during the second half of this year, what should we look for in terms of the next updates and what would you need to see to move forward with that program?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Awesome. I guess, Mark, as you look at those slew of further [reviews] ongoing, how do you think about capital allocation across the programs and what's the current and the latest on cash runway?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. So as you think about -- you mentioned that all the milestones you've mentioned today are baked into the '26 runway, what else is baked in between now and then?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Okay. And then as you think about the potential for partnerships across the portfolio, how do you think about ascribing the sorts of value to the different programs? Where does it make the most sense for you?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Yeah. I guess, to that point, how do you think about the timing within the development timelines for a potential partner? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 13, 2023 / 3:40PM, TERN.OQ - Terns Pharmaceuticals Inc at Goldman Sachs Healthcare Conference

Question: Corinne Jenkins - Goldman Sachs - Analyst : Absolutely. I think we didn't touch on the entire pipeline. Is there anything else you'd highlight as you look over the next couple of years and what we could do you think to get that particular (inaudible)

Question: Corinne Jenkins - Goldman Sachs - Analyst : Yeah. Maybe a last question on our last minute here. You mentioned the discovery, obviously it has been relatively prolific, how should we think about the cadence of new INDs, and how much is being allocated towards those efforts?

Question: Corinne Jenkins - Goldman Sachs - Analyst : Great. Okay. I think that's all I have. Thanks, everyone, for joining us. Thanks, Mark and Erin, for all the comments. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 13, 2023 / 3:40PM, TERN.OQ - Terns Pharmaceuticals Inc at Goldman Sachs Healthcare Conference