Tectonic pullback on Eli Lilly relaxin data ‘overdone,’ says Truist

Truist analyst Danielle Brill notes that shares of Tectonic Therapeutic (TECX) are off by greater than 30% following Eli Lilly’s (LLY) data presentation and publication from their failed study in heart failure with preserved ejection fraction patients with recombinant long acting relaxin mimetic, volenrelaxin. The negative news “represents another hit to the emerging relaxin class of drugs,” but the firm also notes that read-through should be limited as the population enrolled in Lilly’s trial is distinct from those enrolled in Tectonic’s. The firm, which believes Tectonic’s approach of targeting Combined Post- and Pre-Capillary Pulmonary Hypertension has “the strongest rationale” and calls selloff “overdone,” keeps a Buy rating and $64 price target on Tectonic shares.