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Tectonic Therapeutic (TECX)
NASDAQ:TECX
US Market

Tectonic Therapeutic (TECX) AI Stock Analysis

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Tectonic Therapeutic

(NASDAQ:TECX)

34Underperform
Tectonic Therapeutic is facing significant financial challenges with no revenue and ongoing losses, which are the most pressing concerns. However, the recent capital raise and promising trial results provide some optimism. The technical indicators suggest a bearish market outlook, while valuation metrics highlight the need for revenue generation. Overall, the stock is rated low due to its financial instability and uncertain path to profitability.
Positive Factors
Clinical Trial Results
TX45 delivered highly encouraging Ph1b Part A interim results, with full data to be presented at a medical meeting later this year.
Market Opportunity
TECX will report Ph1b data in PH-HFrEF, an indication that could potentially double TX45’s market opportunity.
Valuation
TECX is undervalued given noise around a competitor's discontinuation of their program in a different indication and some misconceptions around the relaxin mechanism.
Negative Factors
Potential Side Effects
A transient, asymptomatic 5-12 mmHg mean decrease in systemic blood pressure was observed post-IV dosing, which resolved at subsequent visits.
Stock Performance
TECX is -52% YTD due to LLY discontinuing their relaxin program and the bear point that TX45 is not an anti-fibrotic.

Tectonic Therapeutic (TECX) vs. S&P 500 (SPY)

Tectonic Therapeutic Business Overview & Revenue Model

Company DescriptionTectonic Therapeutic, Inc., a clinical stage biotechnology company focuses on the discovery and development of therapeutic proteins and antibodies to modulate the activity of G-protein coupled receptors(GPCRs). It offers GEODe technology platform to enable the discovery and development of GPCR-targeted biologic medicines. The company's pipeline products include RXFP1 agonist, which is in ongoing phase 1a and 1b for the indication of heart failure with preserved ejection fraction; GPCR antagonist for indication of hereditary hemorrhagic telangiectasia; bi-functional GPCR modulator for indication of fibrosis; and GPCR modulators. Tectonic Therapeutic, Inc. is based in Watertown, Massachusetts.
How the Company Makes MoneyTectonic Therapeutic makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model includes income from product sales, licensing agreements, and strategic partnerships with other pharmaceutical companies. Key revenue streams involve upfront payments, milestone payments, and royalties from licensing its technology or drug candidates to larger pharmaceutical firms. Additionally, Tectonic may engage in collaborative research and development partnerships to further enhance its pipeline, leveraging external expertise while sharing costs and potential profits.

Tectonic Therapeutic Financial Statement Overview

Summary
Tectonic Therapeutic is experiencing significant financial difficulties, characterized by zero revenue and persistent losses. The balance sheet benefits from low leverage but is offset by negative equity in some periods. The cash flow is negative, but financing activities provide temporary support. Overall, the lack of profitability and revenue growth are substantial risks.
Income Statement
10
Very Negative
Tectonic Therapeutic has consistently reported zero revenue across all periods, indicating a lack of commercialized products or services. The gross profit, EBIT, and net income are all negative, reflecting continued operational losses. No revenue growth is present as there is no revenue to measure. The lack of profitability metrics such as EBIT and net profit margins underscores the financial challenges facing the company.
Balance Sheet
45
Neutral
The company's balance sheet shows a strong equity position with a high equity ratio due to minimal liabilities. However, the negative stockholders' equity in some periods raises concerns about sustained losses. The debt-to-equity ratio is low, indicating low leverage, which is favorable. The consistent cash reserves suggest liquidity is maintained, but the lack of revenue generation remains a significant risk.
Cash Flow
30
Negative
Tectonic Therapeutic has negative operating and free cash flows, indicating cash outflows exceed inflows from operations. The cash flow to net income ratios are irrelevant due to negative net income. The decreasing trend in cash flow growth is concerning, although the company has been able to raise financing, which provides temporary relief.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
-264.00K-617.00K-4.17M-1.40M-1.21M-850.00K
EBIT
-52.66M-44.65M-105.43M-118.84M-120.23M-75.81M
EBITDA
-48.30M-43.17M-101.42M-117.50M-118.50M-72.11M
Net Income Common Stockholders
-49.57M-42.82M-105.89M-119.13M-119.71M-72.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
141.24M28.77M92.85M189.57M259.68M187.04M
Total Assets
152.91M39.40M103.95M203.84M271.23M200.51M
Total Debt
3.30M4.34M16.46M14.95M0.000.00
Net Debt
-137.94M-24.43M-76.38M-174.62M-259.68M-187.04M
Total Liabilities
12.13M6.35M28.58M34.36M16.89M14.50M
Stockholders Equity
140.78M-84.64M75.37M169.48M254.34M186.01M
Cash FlowFree Cash Flow
-44.16M-40.96M-97.47M-100.49M-99.98M-69.25M
Operating Cash Flow
-44.01M-40.68M-97.21M-98.03M-98.80M-67.67M
Investing Cash Flow
-156.00K-279.00K-267.00K-2.46M-1.18M-1.58M
Financing Cash Flow
-7.15M33.75M262.00K30.37M172.62M129.99M

Tectonic Therapeutic Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.84
Price Trends
50DMA
29.98
Negative
100DMA
37.96
Negative
200DMA
30.16
Negative
Market Momentum
MACD
-3.15
Negative
RSI
30.24
Neutral
STOCH
8.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TECX, the sentiment is Negative. The current price of 16.84 is below the 20-day moving average (MA) of 21.62, below the 50-day MA of 29.98, and below the 200-day MA of 30.16, indicating a bearish trend. The MACD of -3.15 indicates Negative momentum. The RSI at 30.24 is Neutral, neither overbought nor oversold. The STOCH value of 8.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TECX.

Tectonic Therapeutic Risk Analysis

Tectonic Therapeutic disclosed 78 risk factors in its most recent earnings report. Tectonic Therapeutic reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Tectonic Therapeutic Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
48
Neutral
$6.86B1.11-50.22%2.47%16.71%1.53%
46
Neutral
$2.92B-19.20%-89.95%-123.71%
46
Neutral
$1.95B-43.94%-83.18%-144.95%
42
Neutral
$147.36M-187.83%-67.20%64.66%
41
Neutral
$736.01M-54.00%59.55%3.09%
39
Underperform
$96.25M-98.10%-58.64%-40.05%
34
Underperform
$330.52M-42.09%-343.40%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TECX
Tectonic Therapeutic
16.84
1.48
9.64%
SGMO
Sangamo Biosciences
0.57
-0.01
-1.72%
EDIT
Editas Medicine
1.13
-5.74
-83.55%
NTLA
Intellia Therapeutics
6.66
-18.44
-73.47%
CRSP
Crispr Therapeutics AG
33.14
-31.89
-49.04%
BEAM
Beam Therapeutics
17.64
-12.91
-42.26%

Tectonic Therapeutic Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Tectonic Therapeutic Secures $185 Million in PIPE Deal
Positive
Feb 3, 2025

On February 3, 2025, Tectonic Therapeutic, Inc. announced a $185 million private placement agreement with accredited investors to fund its development pipeline, working capital, and general corporate purposes. The private investment in public equity (PIPE) involves the sale of 3,689,465 shares of common stock, with the transaction expected to close on February 5, 2025. The financing will support the clinical development of TX45 and TX2100, as well as the company’s discovery platform. The shares are sold under Regulation D’s exemption and are not registered under the Securities Act of 1933. This move is expected to enhance Tectonic’s operational capacity and industry positioning by providing necessary capital for its ongoing and future projects.

Product-Related Announcements
Tectonic Therapeutic Reports Positive Interim Results for TX45
Positive
Jan 30, 2025

On January 30, 2025, Tectonic Therapeutic announced positive interim results from its Phase 1b trial of TX45 in patients with Group 2 Pulmonary Hypertension with Heart Failure with Preserved Ejection Fraction (PH-HFpEF). The results, which achieved all hemodynamic goals, bolster the potential for TX45’s continued development into Phase 2 trials, potentially addressing unmet needs in a market with significant revenue potential.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Tectonic Therapeutic Highlights Pipeline and Financial Strength
Positive
Jan 13, 2025

Tectonic Therapeutic has updated its corporate presentation, highlighting its pipeline and financial status. The company is advancing its lead product, TX45, targeting Group 2 Pulmonary Hypertension with ongoing Phase 1b and upcoming Phase 2 trials, aiming to address a significant unmet need with no current approved therapies. The company’s financial position is robust, with sufficient funds to support operations until mid-2027, and it is preparing to initiate a Phase 1 trial for another product, TX2100, targeting Hereditary Hemorrhagic Telangiectasia.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.