Terns Pharmaceuticals : Corporate Presentation September 2024

Published: 2024-09-30 22:50:03 ET TERN

Company Overview

NASDAQ: TERN

September 2024

Developing small molecule medicines, with clinically validated mechanisms of action, to address oncology and metabolic diseases with large unmet medical need

Terns Investment Highlights and Strategic Approach

Each of Terns' molecules meet the following strategic criteria:

Oncology

De-risked and

Optionality for in-

Complementary

accelerated

house full

with other assets

development pathways

development

Metabolic

Large markets with multiple

Opportunity to create

ways to win (e.g.,

significant value before

combinations)

seeking partnership

Strong Balance Sheet

Cash of $387M1 expected to provide runway into 2028

1. As of June 30, 2024, adjusted for net proceeds from the September 2024 offering; includes marketable securities PTS: probability of technical success

Terns Pipeline: Broad Rights to Multiple Wholly-owned Opportunities Targeting Serious Diseases

EARLY-STAGE CLINICAL

LATE-STAGE

STATUS /

PROGRAM

MECHANISM

INDICATION

PRECLINICAL

CLINICAL

DEVELOPMENT

NEXT MILESTONE

DEVELOPMENT

Oncology

Allosteric BCR-

Anticipated registrational

Ph1 CARDINAL trial initiated

TERN-701

CML

Phase 1

Interim data from

ABL Inhibitor

trial following Ph 1 trial

initial cohorts in Dec '24

Metabolic

Oral GLP-1R

Positive top-line Ph1 data

TERN-601

Obesity

Phase 2 Ready

(28-day PoC) Sept '24

Agonist

Phase 2 initiation 2025

TERN-501

THR-β Agonist +

Positive Ph2a NASH data

Obesity

Phase 2 Ready

Preclinical data in combo with

Combination

Metabolic Agent

GLP-1 (enhanced and higher

quality weight)

TERN-800 Series

GIPR Modulators

Obesity

GIPR Antagonist

GIPR antagonist lead

Lead Opt.

optimization underway

CML: chronic myeloid leukemia, GIPR: glucose-dependent insulinotropic polypeptide receptor, GLP-1R:glucagon-likepeptide-1 receptor, NASH: non-alcoholic steatohepatitis, opt: optimization, PoC: proof of concept,

THR-β: thyroid hormone receptor beta

TERN-701

Allosteric BCR-ABL TKI

for Chronic Myeloid Leukemia

Allosteric TKIs have significant efficacy improvement over active-site TKIs

CML is a $5B orphan indication with need for multiple agents and limited allosteric competition

TERN-701 Phase 1 trial (CARDINAL) progressing; interim data in Dec 2024

Allosteric TKI: an Improved Approach for CML Treatment

TERN-701

TERN-701 is an internally-developed allosteric TKI with an expected profile >asciminib

Active BCR-ABL1➔ Cell proliferation / reduced apoptosis

Active-site TKIs bind to

ATP-binding pocket (e.g.,

BCR

ELVN-001, ponatinib,

imatinib) and can inhibit

other kinases

SH3

• CML is a chronic, orphan indication with a sizeable

market (>$5B) and a need for multiple agents, driven by

lifelong treatment and frequent switching

• Allosteric TKIs have shown ~2x efficacy improvement

over older standard-of-careactive-site TKIs and are better

tolerated, with a relative lack of competition in the class

• Blockbuster expectations for 1st approved allosteric TKI,

asciminib: label in 3L CML expected to expand into 1L

ABL

SH2

Kinase domain

Allosteric TKIs (TERN- 701 & asciminib) are highly selective for BCR-

ABL, binding specifically to the myristoyl pocket

•

TERN-701 is the only other allosteric in development

with the potential to differentiate from asciminib in

efficacy and ease of use (e.g., food effect)

•

Phase 1 CARDINAL trial progressing with site

activations globally and study-eligible subjects being

Inactive BCR-ABL1➔ Cell death

identified by investigators

Note: 1L: 1st line; 3L: 3rd line; TKI: tyrosine kinase inhibitor

Source:Réa et al Blood 2021, NVS2Q 2022 Earnings, Factset estimates

CML is a Sizeable Market With Need for Multiple Agents

TERN-701

CML is a chronic, orphan indication with:

~9,280 new cases being diagnosed in the U.S. in 20241

U.S. CML prevalence today is ~110K and is expected to tripleby 2040, driven by

improved survival2,3

Patients responding to treatment have a life expectancy almost the same as the general population and live decades with their disease requiring life-long treatment4

Current Standard of Care Active-Site TKIs

represent a ~$5B Market5

$2,000

$1,800

Sales

2000

1500

Estimated

(Millions)

1000

$620

$600

2023

500

dasatinib

nilotinib

bosutinib

imatinib

Launch:

2006

2007

2012

2001

Generic

Gleevec

1. Cancer.orgKey Statistics for Chronic Myeloid Leukemia, 2.Huang et al Cancer 2020; 3.Jabbour, Kantarjian, AJH 2020; 4.Bower et al., Journal of Clinical Oncology 2016; 5. Factset estimates (Note: 2023E ponatinib sales of ~$160M)

Frequent Switching Occurs Between TKIs, Most Commonly Due to Intolerance

TERN-701

~40% of people started on a TKI switch to an alternative TKI1

Reasons to switch may include2:

Physicians are seeking additional novel therapies that are safe, efficacious

and well-tolerated

1.Schiffer Blood 2021;Cortes 2023; 2.Hochhaus et al, Leukemia 2020

The Only Approved Allosteric TKI for CML has Shown a Benefit

TERN-701

Over 2nd Gen Active-site TKIs, Leading to Blockbuster Expectations

• Asciminib showed >2x improvement in MMR in 3L

• Analysts expect asciminib to rapidly approach

patients over 96 weeks1 in Phase 3

blockbuster sales

• Asciminib also had a ~3x lower discontinuation rate

Consensus Sales Estimates ($mm)3

than bosutinib over 96 weeks2

$1,500

% of Patients Achieving MMR

2022A: $149M

bosutinib (Active-Site)

38%

2023A: $413M

1,000

BID asciminib (Allosteric)

25%

>2x

500

16%

13%

Week 24

Week 96

2022

2023

2024

2025

2026

2027

2028

(Basis for accelerated approval)

(Basis for full approval)

Note: 3L: 3rd line; BID: twice-daily; MMR: major molecular response; Scemblix has 3L+ U.S. market share of NBRx 43%, TRx 22% as of 4Q23 (NVS 4Q23 Earnings) 1.Scemblix Prescribing Information2. (8% asciminib vs 26% bosutinib) 3. Estimates from EvaluatePharma; may include sales beyond 3L setting

Disclaimer

Terns Pharmaceuticals Inc. published this content on September 30, 2024 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 01, 2024 at 02:49:04 UTC.