Terns Pharmaceuticals : Corporate Presentation April 2024

Company Overview

NASDAQ: TERN

April 2024

Forward-Looking Statements and Disclaimers

This presentation contains forward-looking statements about Terns Pharmaceuticals, Inc. (the "Company," "we," "us," or "our") and its industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements regarding the Company's strategy, future financial condition, future operations, 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. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this presentation, it cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur at all. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our Securities and Exchange Commission ("SEC") reports, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2023. These risks are not exhaustive. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation.

This presentation discusses product candidates that are investigational only and have not yet been approved for marketing by the U.S. Food and Drug Administration. No representation is made as to the safety or effectiveness of these product candidates for the use for which such product candidates are being studied. Certain comparisons in this presentation between our product candidates and other agents are not based on head- to-head trials and are based on publicly available data, which may include cross-trial and/or cross-phase comparisons.

The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of such products.

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

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Terns Investment Highlights and Strategic Approach

Each of Terns' molecules meet

the following strategic criteria:

• Oral, small molecule compounds
• Clinically validated mechanisms with opportunities to improve
• Indications with high unmet needs

1. As of December 31, 2023

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 near-
ways to win (e.g.,	term value before seeking
combinations)	partnership

Strong Balance Sheet

Cash of $263M1 expected to provide runway into 2026

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

				EARLY-STAGE CLINICAL	LATE-STAGE
PROGRAM	MECHANISM	INDICATION	PRECLINICAL	CLINICAL	STATUS
DEVELOPMENT
				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 2H24

Metabolic
TERN-601	Oral GLP-1R	Obesity	Phase 1
Agonist
TERN-501	THR-β Agonist +	Obesity	Preclinical
combination	Metabolic Agent
TERN-800 Series	GIPR Modulators	Obesity	Lead
optimization

Phase 1 initiated

Top-line data (28-day PoC)

2H24

Preclinical activities

underway

Lead optimization underway

Candidate nomination & IND- enabling activities ongoing

Out-licensed to Hansoh Pharma (HS 10382) in the Greater China region; Ph 1 trial ongoing in China; Terns eligible for up to $ 67M in clinical, regulatory and sales-based milestones, mid single digit percentage royalties on net sales; certain milestones are subject to the availability of additional data and future funding

PoC: Proof of concept

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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 2H24

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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		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

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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
		0
		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)

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Frequent Switching Occurs Between TKIs, Most	TERN-701
Commonly Due to Intolerance

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

Reasons to switch may include2:

• side effects / intolerance
• co-morbidity
• inadequate response
• drug-druginteraction

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

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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

						2023A: $413M
35		bosutinib (Active-Site)	38%	1,000
30		BID asciminib (Allosteric)

25	25%	>2x
20
15			500
	16%
	13%
10
5
0	Week 24	Week 96	0
	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

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