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Tectonic Therapeutic initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Tectonic Therapeutic with an Overweight rating and $55 price target. The market is pricing in low expectations for TX45, the analyst tells investors in a research note. The firm says TX45 is not a vasodilator but a relaxin, which has shown signs of improved left sided heart function across multiple Phase 3 studies for Novartis’ serelaxin. It believes TX45 not only improves upon serelaxin’s short half life but targets an indication in which it could potentially lead to even greater efficacy.

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