UBS Starts Tectonic Therapeutics Inc. (TECX) at Neutral

UBS analyst Alice Nettleton initiates coverage on Tectonic Therapeutics Inc. (NASDAQ: TECX) with a Neutral rating and a price target of $26.00.

The analyst comments: “We initiate coverage of Tectonic Therapeutic (TECX) with a Neutral rating and $26 PT. The key catalyst for TECX is the 1Q27 Phase 2 APEX readout for TX45, a long-acting relaxin, in Group 2 pulmonary hypertension associated with heart failure with preserved ejection fraction (PH-HFpEF). Based on our KOL checks and other research, we believe the study is likely to achieve its primary endpoint of pulmonary vascular resistance (PVR). However, six-minute walk distance (6MWD), which we expect to be the key Phase 3 registrational endpoint, remains a tougher hurdle and, in our view, there are roughly even odds of achieving a meaningful ~15-20m improvement in the Phase 2. In addition, we are not yet convinced that TX45 can sidestep relaxin safety concerns such as worsening congestion. For PH-HFpEF, we model $380M risk-adjusted 2035 sales (vs cons at $1B) and $2.8B in unadjusted 2035 sales (vs cons at $2.9B).”

For an analyst ratings summary and ratings history on Tectonic Therapeutics Inc. click here. For more ratings news on Tectonic Therapeutics Inc. click here.

Shares of Tectonic Therapeutics Inc. closed at $23.33 yesterday.

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