US-based liver disease therapy developer Terns Pharmaceuticals closed an $87m series C round yesterday backed by pharmaceutical firm Eli Lilly in addition to its Lilly Asia Ventures vehicle.
The round was led by healthcare-focused investment firm Deerfield Management and included OrbiMed, Vivo Capital, Samsara Capital, Suvretta Capital Management and undisclosed new investors.
Terns is working on small molecule drugs for non-alcoholic steatohepatitis (NASH), an advanced form of fatty liver disease that leads to inflammation and scarring.
The company’s lead asset, TERN-101, addresses NASH by triggering a bile production mechanism called the acid farnesoid X receptor. Bile helps break down liver fats into fatty acids.
The series C capital will fund an ongoing phase 2a clinical trial for TERN-101, which was licensed from Eli Lilly. The trial is due to report findings in the second half of this year, and Terns is also looking to begin phase 1 and phase 1b trials for two further NASH candidates.
Terns is investigating both single and combination drug regimens. Deerfield Management partner Elise Wang has joined its board of directors in connection with the round.
Lilly Asia Ventures equipped Terns with $30m in series A funding at the time of its 2017 launch. It subsequently closed an $80m series B round in 2018 co-led by Vivo Capital and OrbiMed that also featured Lilly Asia Ventures and Decheng Capital.