Tectonic Therapeutic initiated with an Outperform at Mizuho

Mizuho initiated coverage of Tectonic Therapeutic (TECX) with an Outperform rating and $51 price target The company’s lead asset, TX45, is a long-acting relaxin protein for treating pulmonary hypertension due to left heart disease, the analyst tells investors in a research note. The firm believes TX45 could differentiate due to potentially better efficacy and safety as well as once-monthly subcutaneous dosing. The 2.5M patient total addressable market is “considerable,” and TX45 could carve out a niche in the severe patient subgroup and achieve $3.3B in unadjusted peak sales, contends Mizuho.