Terns Pharmaceuticals Inc at Morgan Stanley Global Healthcare Conference Transcript

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

Question: Kelly McCarthy - Morgan Stanley - Analyst : <_ALACRA_META_ABSTRACT>Thank you for doing that. Yes. It's good housekeeping. So maybe Amy, we can start with you. And just for those who may not be as familiar with the Terns' story, maybe you can provide a little bit of the background and what you're most excited for today looking forward? Amy Burroughs - Terns Pharmaceuticals Inc - Chief Executive Officer, Interim Principal Financial Officer, Director Sure. Well, first, I really want to thank you, Kelly, the Morgan Stanley team and everybody here in the room today for being with us to hear our story. It's a really exciting time for Terns. We have two clinical readouts coming out in Q4, which I'd love to talk more about. We're a company that's been around for eight years. We've got a strong clinical and execution team. And yes, we're excited to be here. So the two readouts that we have in Q4 is really for our lead asset, which is TERN-701, our allosteric BCR-ABL inhibitor for chronic myeloid leukemia, which we really see as a potential best-in-class really best drug potentially for chronic myeloid leukemia, a chronic disease for which there's significant unmet need. And then we have TERN-601, our GLP-1 receptor agonist in a Phase IIa 12-week study for obesity.

Question: Kelly McCarthy - Morgan Stanley - Analyst : Let's go deeper on TERN-701, your lead asset. And maybe you can talk a little bit high level around the CML landscape and what the current treatment paradigm is and particularly the limitations of existing therapies in that space.

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. So as you think about TERN-701 entering this space and maybe even talk about how your enrollment progress to date speaks to the unmet need in the second line plus setting. How do you see your drug fitting into this existing landscape?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Yes, of course. So where do you see yourself fitting in? You've done a good job laying out what the existing treatment paradigm is in CML. But you're enrolling this study, you're going to read it out in the fourth quarter and the second line plus. Where do you see yourself breaking in? And maybe also just talk about the differentiation of 701 and what you expect to see?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Great. And I'm glad you mentioned the webinar you did and everyone who's interested in this program should definitely go and listen to that because I think it's helpful in terms of just expectation setting. I guess maybe on that topic, what do you think were the key takeaways from that session. And as we look to the data set, anything you should -- you want to say in terms of what you expect the bar for success to be or what you're hoping to read out?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. You started to go there a little bit with the food effect and the benefit there that you have. And I think that speaks importantly to just the patient experience. But anything else you would share that you have learned along the road in terms of -- from patients or from prescribers who could potentially be prescribing this drug in terms of their experience with it?

Question: Kelly McCarthy - Morgan Stanley - Analyst : So assuming success in your upcoming readout, I believe the next step for this indication would be a pivotal study. So can you talk a little bit about your current plans and the discussions you'll have following your data?

Question: Kelly McCarthy - Morgan Stanley - Analyst : That could potentially really open up the size of the market opportunity here.

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. All right. That's helpful. And maybe just taking a step back on CML and the competitive dynamics here, what do you see as the competitive other programs out there? Or how you're thinking about other programs that are parallel tracking to yours as well?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. Very helpful. Maybe one last one on CML. I know we talked about the treatment paradigm, but how do you actually size up this market in the first and second line? Anything you can share on commercial opportunity?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. Great. Maybe let's turn to your obesity pipeline. I think very topical, the obesity space has become quite competitive in recent years. And we've actually seen some mixed news in the past couple of months with respect to some of the oral therapies that are being developed. So can

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. So just looking ahead to the Phase II FALCON readout that's right around the corner. I mean, you mentioned differentiated tolerability, but what else needs to come together in that data set for you to consider it a success?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. Great. I know data coming in early Q4, and you mentioned that this is a potential value driver from a business development perspective for your pipeline. You have multiple assets in your obesity pipeline that could serve you in that way. I guess with respect to those plans, what do you think it would take for those assets to be attractive to pharma? Do you think that this data set could support that? Or how are you thinking about why it may fit into a pharma pipeline with the competitive dynamics that are at play in obesity today?

Question: Kelly McCarthy - Morgan Stanley - Analyst : And before we leave the obesity theme, I mean, anything you'd highlight on the earlier programs and particularly looking at different targets and anything interesting you've learned from those -- advancing those?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. Great. I know you've publicly guided to cash runway into 2028. Can you talk a little bit about what that means practically for not only the -- of course, the two updates that we're going to have later this year, but what else is on the horizon? Where does that actually take you to?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. Good to know. And maybe, Amy, you can talk a little bit more about the team that you've assembled at Terns. Do you have the right pieces in place today to execute on these plans that you've laid out?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Okay. With just a few minutes left, I'd love to ask you just what is the most exciting. I know you have a very busy couple of quarters ahead, and you laid out some of the longer-dated plans that you have. But what would you want to share with investors and with our audience that we haven't talked about related to the vision you guys have at Terns and what excites you the most going forward?

Question: Kelly McCarthy - Morgan Stanley - Analyst : Well, we will stay tuned, and we will be rooting for your success across not just one, but both clinical readouts as you advance across your pipeline. And we're really glad that you're both able to join us today and hope it's been a great conference, and we'll be on the lookout for updates.

Question: Kelly McCarthy - Morgan Stanley - Analyst : All right, thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 2:00PM, TERN.OQ - Terns Pharmaceuticals Inc at Morgan Stanley Global Healthcare Conference