(Reuters) -Terns Pharmaceuticals said on Monday its oral obesity drug helped to reduce weight by an average of 4.9% in an early stage study, sending its shares surging 31% in premarket trading.

The experimental drug, TERN-601, which belongs to the popular GLP-1 class, also met the main goals of safety and tolerability in the study, the company said.

Market leaders Wegovy from Novo Nordisk and Zepbound from Eli Lilly are injectable drugs. The two companies are also developing oral treatments for weight loss.

A 740-milligram dosage of the once-daily drug led to an average weight loss of 4.9%, when adjusted for placebo rates, after 28 days of treatment.

The company said it plans to advance the drug into mid-stage trials next year.

(Reporting by Mariam Sunny in Bengaluru; Editing by Shilpi Majumdar)