SNAPSHOT

Terns’ CML drug may pull ahead of Novartis’ blockbuster according to new data

Terns Pharmaceuticals' experimental drug TERN-701 showed strong early results in treating chronic myeloid leukemia (CML), helping 74% of patients achieve a key treatment milestone and potentially outpacing Novartis’ top-selling Scemblix.

Why it matters: CML patients who fail current treatments face limited options. TERN-701 may offer a more effective and better-tolerated alternative, potentially challenging Scemblix’s market dominance and reshaping the treatment landscape.

Backstory: Scemblix, approved in 2021, is Novartis’ latest CML drug and expected to hit $4B in annual sales. Terns unveiled early positive data in November, tripling its stock and the new detailed trial results presented this week at the American Society of Hematology (ASH) meeting confirm the drug’s potential.

Big picture: TERN-701 is part of a new generation of drugs that work by reshaping a key signaling molecule in CML, reducing off-target effects compared to older treatments.

Zoom in: In the Phase 1 CARDINAL trial, 74% of 38 patients achieved a major molecular response by week 24, while only Scemblix helped 25% reach that mark in a similar study population. TERN-701 also showed a low rate of severe side effects (32% Grade 3 events) and no signs of high blood pressure or pancreatitis.

What's next: TERN-701 is being developed for patients who fail other CML drugs like Gleevec or Scemblix. Terns will advance TERN-701 into further clinical trials with refined dosing. The next stages will focus on confirming efficacy and safety in larger, possibly head-to-head studies.

SNIPPETS

What’s happening in biotech today?

💥 Combo power: Data from the MajesTEC-3 trial, presented at the ASH’s annual meeting, show that Johnson & Johnson’s bispecific antibody Tecvayli, when combined with Darzalex, significantly improves outcomes for multiple myeloma patients treated earlier in their disease course. The combination reduced the risk of disease progression or death by 83% compared to a standard Darzalex-based regimen, with 90% of patients who remained progression-free after three years. These results suggest curative potential and support expanding Tecvayli’s use beyond later treatment lines, offering a more accessible alternative to complex therapies like CAR-T.

 🕵️‍♂️ Gene sleuthing: Novartis has entered a strategic collaboration worth up to $1.7 billion with London-based Relation Therapeutics to discover new immuno-dermatology drug targets using artificial intelligence. The deal includes a $55 million upfront commitment from Novartis, comprising cash, equity investment, and R&D funding, with Relation eligible for milestone payments and tiered royalties. Relation’s Lab-in-the-Loop platform integrates AI with patient-derived multi-omic data to identify causal genes and refine therapeutic hypotheses. The partnership aims to generate functional cell atlases from patient tissue to improve target discovery for atopic diseases. Novartis will hold global rights to develop and commercialize any resulting therapies.

🚀 RNAi rocket: Sino-American biotech Sanegene Bio has secured over $110 million in a Series B funding round to advance its RNA interference (RNAi) pipeline into registration studies and expand development across metabolic, cardiovascular, and autoimmune diseases. The round was led by an unnamed industrial investor and included participation from an international sovereign fund, China Biopharma, Legend Capital, and others, with strategic backing from Eli Lilly. In November, Eli Lilly already entered a collaboration with SanegeneBio valued at up to $1.2 billion to advance RNAi therapies for metabolic diseases.

🌊 Stem cell surge: Exicure has reported a successful phase 2 trial for burixafor, its investigational small molecule designed to enhance stem cell mobilization in multiple myeloma patients undergoing autologous transplants. In the study, 89.5% of participants achieved the target level of CD34+ hematopoietic progenitor cells within two leukapheresis sessions, with all patients reaching the goal after a third session if needed. The treatment, combined with G-CSF and propranolol, was well tolerated with no serious adverse events. This marks a significant turnaround for Exicure, which had previously faced major setbacks, leadership changes, and financial struggles before acquiring burixafor from GPCR Therapeutics.

💔 Helicase breakup: GSK has officially ended its partnership with Ideaya Biosciences, returning the rights to two clinical programs, targeting Werner Helicase and Pol Theta Helicase (two crucial DNA helicases involved in DNA repair and maintenance), as part of the termination of their 2020 licensing agreement. The breakup, initiated by GSK, follows its earlier withdrawal from Ideaya’s MAT2A inhibitor program in 2022. Under the original deal, Ideaya received $100 million upfront and shared development costs and profits for select programs. Despite the dissolution, Ideaya plans to explore strategic options for the returned assets in 2026 and maintains that its cash runway remains secure through 2030, supported by other partnerships.

SNAPSHOT

Pfizer turns to China for new shot at obesity pill success

Pfizer has licensed a Phase 1 oral obesity drug from China’s YaoPharma in a deal worth up to $2 billion, aiming to revive its struggling weight-loss drug ambitions.

Why it matters: The obesity drug market is booming, led by Lilly and Novo Nordisk. Pfizer has failed to keep pace and now turns to external partnerships to stay competitive.

Backstory: Pfizer’s internal obesity drug programs hit setbacks, with key candidates like danuglipron dropped over safety concerns. After acquiring Metsera for $10B, this latest deal marks another move to buy rather than build. Pfizer’s deal with 3SBio earlier this year also reflects its strategy of sourcing innovation from China.

Big picture: This deal proves the urgency for Pfizer to find new growth areas as COVID product revenues plunge. The post-COVID slump drove cost cuts and a $43B Seagen acquisition to boost its cancer portfolio. It also highlights a growing U.S. pharma trend of sourcing innovation from Chinese biotech firms to cut costs and speed development.

Zoom in: Pfizer pays $150M upfront to YaoPharma, a Fosun Pharma subsidiary, for rights to YP05002, an oral GLP-1 agonist now in Phase 1. The deal includes up to $1.94B in milestone payments and royalties on sales. YP05002 has a different structure than Pfizer’s failed danuglipron, more akin to Lilly’s orforglipron, now under FDA review.

What's next: YaoPharma continues Phase 1 work, while Pfizer plans combo studies with its own Phase 2 obesity drug, PF-07976016. The company is betting YP05002 can eventually compete with oral versions of Wegovy, now awaiting FDA approval, and Lilly’s orforglipron, expected to reach approval by mid-2026.

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