Terns Pharmaceuticals Reports Fourth Quarter and Full Year 2022 Financial Results and Corporate Updates
March 27 2023 - 4:05PM
Terns Pharmaceuticals, Inc. (“Terns” or the “Company”) (Nasdaq:
TERN), a clinical-stage biopharmaceutical company developing a
portfolio of small-molecule product candidates to address serious
diseases, including oncology, non-alcoholic steatohepatitis (NASH)
and obesity today reported financial results for the fourth quarter
and full year ended December 31, 2022 and corporate updates.
“As announced in our release earlier this month, 2023 promises
to be another transformative year for Terns as we make meaningful
strides to advance our pipeline of medicines to address serious
unmet needs. In addition to data from our Phase 2a DUET trial in
NASH, expected in the third quarter of 2023, we also anticipate key
clinical readouts in 2024 from our clinical trials in chronic
myeloid leukemia and obesity. We are fortunate to have a strong
balance sheet to support development activities and the growth of
our company into 2026,” said Mark Vignola, chief financial officer
of Terns.
“We look forward to having Emil join us as chief medical officer
of Terns oncology, as his deep relationships and clinical
development experience in hematologic and solid malignancies will
be vital as we advance TERN-701 for CML and expand our oncology
development team,” said Sen Sundaram, chief executive officer at
Terns. “Jay brings over a decade of experience across finance and
biotech industries, and we are excited to have him lead our
strategic business development efforts across both metabolic
disease and oncology. Together, these new appointments further
strengthen our senior leadership team, and we are well positioned
to advance our pipeline towards three significant readouts in the
next 18 months or so.”
Key Leadership Appointments
- Emil Kuriakose, MD will join Terns in May 2023 as chief medical
officer of Terns oncology, bringing over a decade of clinical
development expertise including early through late-stage
development in several oncology indications. Prior to Terns, Dr.
Kuriakose served as chief medical officer at Calithera Biosciences
overseeing clinical development strategy and execution
- Jason Lettiere joined Terns in November 2022 as vice president
of business development, bringing more than 13 years of experience
in the finance and biotechnology industries
Fourth Quarter and Full Year Financial
Results
- Cash Position: As of December 31, 2022, cash,
cash equivalents and marketable securities were $283.1 million as
compared with $166.0 million as of December 31, 2021. Based on its
current operating plan, Terns expects these funds will be
sufficient to support its planned operating expenses into
2026.
- Research and Development (R&D) Expenses:
R&D expenses were $10.7 million and $39.6 million for the
quarter and year ended December 31, 2022, respectively, as compared
with $9.5 million and $31.3 million for the quarter and year ended
December 31, 2021, respectively.
- General and Administrative (G&A) Expenses:
G&A expenses were $6.2 million and $22.4 million for the
quarter and year ended December 31, 2022, respectively, as compared
with $5.4 million and $19.5 million for the quarter and year ended
December 31, 2021, respectively.
- Net Loss: Net loss was $15.8 million and $60.3
million for the quarter and year ended December 31, 2022,
respectively, as compared with $14.2 million and $50.2 million for
the quarter and year ended December 31, 2021, respectively.
- Common Stock and Pre-Funded Warrants: As of
December 31, 2022, there were 53.7 million shares of common stock
and 14.6 million pre-funded warrants issued and outstanding.
Terns Pharmaceuticals, Inc. |
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Consolidated Statements of Operations |
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(Unaudited; in thousands except share and per share
amounts) |
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Quarter EndedDecember 31, |
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Year EndedDecember 31, |
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2022 |
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2021 |
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2022 |
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2021 |
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Revenue: |
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License revenue |
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$ |
— |
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$ |
1,000 |
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$ |
— |
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$ |
1,000 |
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Operating expenses: |
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Research and development |
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10,658 |
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9,462 |
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39,617 |
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31,311 |
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General and administrative |
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6,170 |
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5,416 |
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22,412 |
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19,549 |
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Total operating expenses |
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16,828 |
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14,878 |
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62,029 |
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50,860 |
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Loss from operations |
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(16,828 |
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(13,878 |
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(62,029 |
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(49,860 |
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Interest income |
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1,328 |
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55 |
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2,110 |
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170 |
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Other (expense) income, net |
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(4 |
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10 |
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(68 |
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40 |
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Loss before income taxes |
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(15,504 |
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(13,813 |
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(59,987 |
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(49,650 |
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Income tax expense |
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(318 |
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(435 |
) |
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(358 |
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(508 |
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Net loss |
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$ |
(15,822 |
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$ |
(14,248 |
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$ |
(60,345 |
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$ |
(50,158 |
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Net loss per share, basic and diluted |
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$ |
(0.29 |
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$ |
(0.56 |
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$ |
(1.67 |
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$ |
(2.21 |
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Weighted average common stock outstanding, basic and diluted |
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54,696,352 |
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25,267,527 |
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36,033,045 |
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22,705,948 |
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Terns Pharmaceuticals, Inc. |
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Selected Balance Sheet Data |
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(Unaudited; in thousands) |
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December 31, |
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2022 |
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2021 |
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Cash, cash equivalents and marketable securities |
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$ |
283,114 |
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$ |
165,982 |
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Total assets |
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287,026 |
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168,070 |
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Total liabilities |
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10,083 |
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7,767 |
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Total stockholders’ equity |
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276,943 |
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160,303 |
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About Terns PharmaceuticalsTerns
Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company
developing a portfolio of small-molecule product candidates to
address serious diseases, including oncology, NASH and obesity.
Terns’ pipeline includes two clinical stage development programs
including an allosteric BCR-ABL inhibitor and a THR-β agonist (+/-
an FXR agonist), and preclinical small-molecule GLP-1 receptor
agonist and GIPR modulator programs. For more information, please
visit: www.ternspharma.com.
Cautionary Note Regarding Forward-Looking
StatementsThis press release contains forward-looking
statements about Terns Pharmaceuticals, Inc. (the “Company,” “we,”
“us,” or “our”) within the meaning of the federal securities laws,
including those related to the Company’s expectations of timing and
potential results of the Company’s clinical trials and other
development activities; the potential indications to be targeted by
the Company with its small-molecule product candidates; the
therapeutic potential of the Company’s small-molecule product
candidates; the potential for the mechanisms of action of the
Company’s product candidates to be therapeutic targets for their
targeted indications; the potential utility and progress of the
Company’s product candidates in their targeted indications,
including the clinical utility of the data from and the endpoints
used in the Company’s clinical trials; the Company’s clinical
development plans and activities, including the results of any
interactions with regulatory authorities on its programs; the
Company’s expectations regarding the profile of its product
candidates, including efficacy, tolerability, safety, metabolic
stability and pharmacokinetic profile and potential differentiation
as compared to other products or product candidates; the Company’s
plans for and ability to continue to execute on its current
development strategy, including potential combinations involving
multiple product candidates; the impact of new legislation and
regulatory developments on the Company’s plans for its product
candidates, such as the effect of the Inflation Reduction Act of
2022; and the Company’s expectations with regard to its cash runway
and sufficiency of its cash resources. All statements other than
statements of historical facts contained in this press release,
including statements regarding the Company’s strategy, future
financial condition, future operations, future trial results,
projected costs, prospects, plans, objectives of management and
expected market growth, are forward-looking statements. In some
cases, you can identify forward-looking statements by terminology
such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,”
“continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,”
“intend,” “may,” “objective,” “plan,” “positioned,” “potential,”
“predict,” “seek,” “should,” “target,” “will,” “would” and other
similar expressions that are predictions of or indicate future
events and future trends, or the negative of these terms or other
comparable terminology. The Company has based these forward-looking
statements largely on its current expectations, estimates,
forecasts and projections about future events and financial trends
that it believes may affect its financial condition, results of
operations, business strategy and financial needs. In light of the
significant uncertainties in these forward-looking statements, you
should not rely upon forward-looking statements as predictions of
future events. These statements are subject to risks and
uncertainties that could cause the actual results and the
implementation of the Company’s plans to vary materially, including
the risks associated with the initiation, cost, timing, progress,
results and utility of the Company’s current and future research
and development activities and preclinical studies and clinical
trials. These risks are not exhaustive. For a detailed discussion
of the risk factors that could affect the Company’s actual results,
please refer to the risk factors identified in the Company’s SEC
reports, including but not limited to its Annual Report on Form
10-K for the year ended December 31, 2022. Except as required by
law, the Company undertakes no obligation to update publicly any
forward-looking statements for any reason.
Contacts for Terns
InvestorsJustin Nginvestors@ternspharma.com
MediaJenna UrbanBerry & Company Public
Relationsmedia@ternspharma.com
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