Terns Pharmaceuticals’ oral obesity drug shows promise in early study, shares jump
Sept 9 (Reuters) – Terns Pharmaceuticals (TERN.O) said its oral obesity drug reduced weight by an average of 4.9% in an early stage study, joining drugmakers vying for a share of the lucrative obesity treatment market and sending its shares up 20% on Monday.
The experimental drug is part of the second generation of weight-loss pills under development by companies including Pfizer (PFE.N) and Roche (ROG.S), which aims to offer a more convenient alternative to injections.
Market leaders Wegovy from Novo Nordisk (NOVOb.CO) and Zepbound from Eli Lilly (LLY.N) are both injectable drugs. The two companies are also developing oral weight-loss treatments.
“We’re very pleased with the totality of the data… seeing in particular, no red flags,” Mizuho analyst Graig Suvannavejh said in a note.
Shares of Terns were trading at $9.38 in premarket trading. They have gained about 20% this year, through Friday’s close.
