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On Monday, H.C. Wainwright analyst Joseph Pantginis revised the price target for Tenaya Therapeutics Inc (NASDAQ:TNYA) stock, lowering it to $5.00 from the previous $18.00, while still maintaining a Buy rating on the company’s shares. The adjustment follows Tenaya’s announcement of its 2024 earnings results, which were released after the market closed on Sunday. According to InvestingPro data, the stock has shown significant volatility with a beta of 2.84, while maintaining a modest market capitalization of $40.06 million.
Tenaya reported fourth-quarter earnings per share (EPS) of ($0.28) and full-year 2024 EPS of ($1.31). These figures slightly outperformed both the analyst’s expectations of ($0.31) EPS for the fourth quarter and ($1.35) for the year, and the consensus estimates of ($0.31) and ($1.33), respectively. The biotechnology firm concluded 2024 with $61.4 million in cash reserves. InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, it’s quickly burning through its cash reserves. The company maintains a healthy current ratio of 5.27, indicating strong short-term liquidity.
The company’s management is optimistic that their current financial position, bolstered by an additional $48.89 million from a recent financing round, will sustain operations into mid-2026. Looking forward, Tenaya is concentrating on advancing its clinical programs, which include treatments for various cardiomyopathies. InvestingPro subscribers have access to 14 additional key insights about Tenaya’s financial health and market position, helping investors make more informed decisions about this clinical-stage biotech company.
The company is currently developing two gene therapy programs: TN-201, aimed at treating MYBPC3-associated hypertrophic cardiomyopathy (HCM), and TN-401, targeting PKP2-associated arrhythmogenic right ventricular cardiomyopathy (ARVC). Positive initial data from the Phase 1b study of TN-201, known as MyPeak-1, has already been shared, with further updates expected in the first half of 2025. Additionally, initial results from the Phase 1b study of TN-401, named RIDGE-1, are anticipated in the second half of the year.
In his commentary, Pantginis reiterated the Buy rating but noted that the decreased price target to $5 is a reflection of the dilution resulting from the recent capital raise. The analyst remains focused on the potential of Tenaya’s clinical programs and the forthcoming data that could influence the company’s trajectory.
In other recent news, Tenaya Therapeutics has announced a public offering of common stock and warrants, with Leerink Partners and Piper Sandler serving as joint bookrunning managers. The offering is contingent on market conditions, and a preliminary prospectus supplement will be filed with the SEC. Additionally, Tenaya has appointed Mr. Tomohiro Higa as the Interim Principal Accounting Officer, who will also continue as Senior Vice President, Finance. In a move to retain key personnel, the company has repriced certain stock options, including those of CEO Faraz Ali, to $1.21 per share. This repricing is designed to motivate employees without increasing cash expenditures or diluting stock.
H.C. Wainwright has maintained a Buy rating on Tenaya’s stock, following the company’s receipt of an $8 million grant from the California Institute of Regenerative Medicine. This grant supports the ongoing Phase 1b RIDGE-1 study of TN-401, a gene therapy for PKP2-associated arrhythmogenic right ventricular cardiomyopathy. The RIDGE-1 trial aims to assess the safety and efficacy of TN-401 and is progressing with over 100 participants enrolled. Tenaya continues to advance its gene therapy candidates, including TN-201 and TN-401, with significant updates expected in 2025.
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