Tectonic draws bullish view at Wells Fargo on lead asset

aluxum Tectonic Therapeutic ( NASDAQ: TECX ) traded higher on Thursday after Wells Fargo launched its coverage with an Overweight recommendation and a $55 per share target, mainly highlighting its lead candidate, TX45. The company recently started a global Phase 2 program called “APEX” to study TX45 for patients with Group 2 pulmonary hypertension (PH) due to heart failure with preserved ejection fraction (PH-HFpEF), a lung condition with no FDA-approved therapies. Wells Fargo noted that most drugs targeted at Group 2 PH were designed to expand narrowed pulmonary vessels without a concurrent improvement to the pumping ability of the left side of the heart.

With TX45 being a relaxin, not a vasodilator, the experimental therapy has already demonstrated signs of improving left side heart’s function across late-stage trials for Novartis’ ( NVS ) serelaxin, according to Wells Fargo. The firm added that with a longer half-life than serelaxin, TX45 is positioned to target a condition where it can offer greater clinical efficacy. More on AVROBIO Tectonic Therapeutic: Analyzing Its Post-Merger Valuation And Prospects Tectonic gets FDA okay to begin clinical testing for lead drug TX45 Tectonic, AVROBIO complete merger, announce $130.

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