Leerink maintains Tectonic stock Outperform with $69 target

Published 28/01/2025, 21:38
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Leerink Partners analyst David Risinger noted the significant concern about the likelihood of success of TX45 in PH-HFpEF following the termination of Eli Lilly (NYSE:LLY)’s study. However, the firm awaits further clarity from Eli Lilly and commentary from Tectonic’s management on the matter. The situation underscores the interconnected nature of clinical research where the outcome of one study can affect the perceived prospects of similar drug candidates in development. With Eli Lilly’s stock showing a significant 9% return over the last week and trading at elevated multiples, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports. With Eli Lilly’s stock showing a significant 9% return over the last week and trading at elevated multiples, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports.

Eli Lilly halted its phase 2 clinical trial for volenrelaxin in chronic kidney disease (CKD) after a related heart failure study showed no benefit in a similar patient population. Both volenrelaxin and TX45 are based on the long-acting relaxin mechanism and are aimed at treating cardiopulmonary diseases. The discontinued study (NCT06598631) was ended due to efficacy reasons, as stated on clinicaltrials.gov, with the note that the study was terminated due to a lack of foreseeable clinical benefit in the proposed CKD population.

Leerink Partners analyst David Risinger noted the significant concern about the likelihood of success of TX45 in PH-HFpEF following the termination of Eli Lilly’s study. However, the firm awaits further clarity from Eli Lilly and commentary from Tectonic’s management on the matter. The situation underscores the interconnected nature of clinical research where the outcome of one study can affect the perceived prospects of similar drug candidates in development. With Eli Lilly’s stock showing a significant 9% return over the last week and trading at elevated multiples, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports.

Leerink Partners analyst David Risinger noted the significant concern about the likelihood of success of TX45 in PH-HFpEF following the termination of Eli Lilly’s study. However, the firm awaits further clarity from Eli Lilly and commentary from Tectonic’s management on the matter. The situation underscores the interconnected nature of clinical research where the outcome of one study can affect the perceived prospects of similar drug candidates in development.

In other recent news, Tectonic’s stock saw a significant decline following the termination of a similar drug trial by Eli Lilly, causing concerns over the future of Tectonic’s lead product, TX45. Analyst firm Leerink maintains an ’outperform’ rating on Tectonic, despite expressing concerns about the success of TX45. Meanwhile, Bernstein analysts have reiterated their ’Outperform’ rating on Eli Lilly, highlighting the company’s robust growth and strong market position.

BofA Securities also maintained a ’Buy’ rating on Eli Lilly, expressing confidence in the company’s strong market presence and financial health. Novo Nordisk (NYSE:NVO), a competitor, released promising trial results for its obesity treatment, amycretin, which showed significant weight loss in participants. These developments have put pressure on Eli Lilly, as Novo Nordisk’s advancements could potentially challenge Eli Lilly’s obesity drug, Zepbound.

Novo Nordisk also retained its ’Buy’ rating from BofA Securities, which expressed confidence in the company’s future performance and strategic decisions. The firm highlighted the potential of Novo Nordisk’s CagriSema and orforglipron in the obesity treatment market. These recent developments underline the competitive landscape and advancements in obesity treatment within the pharmaceutical industry.

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