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Tenaya shares hold Buy rating on developing treatments for HCM

EditorNatashya Angelica
Published 08/07/2024, 18:00
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On Monday, Tenaya Therapeutics Inc (NASDAQ:TNYA) maintained its Buy rating and $18.00 stock price target from H.C. Wainwright, reflecting optimism about the company's progress in developing treatments for hypertrophic cardiomyopathy (HCM).

The focus is on the upcoming data from the MyPeak-1 study, expected in the second half of 2024, which will provide insights into TN-201, Tenaya's gene therapy candidate.

TN-201, an AAV-based gene therapy, aims to restore normal levels of the myosin-binding protein by reestablishing the human MYBPC3 gene in heart muscle. The therapy is currently under trial for patients with MYBPC3-associated nonobstructive HCM, a genetic condition that affects the heart muscle.

The MyPeak-1 study initially set out to enroll at least six adults with symptoms and diagnosed with the condition, all of whom are required to have an implantable cardioverter defibrillator. The study's broader recruitment goals include up to 15 participants across both U.S. and international sites.

Key measurements in the trial include markers of cardiac transduction and transgene expression, changes in circulating cardiac biomarkers, imaging biomarkers, as well as improvements in exercise capacity, symptom burden, and quality of life (QoL).

Tenaya commenced dosing in October 2023 and is now evaluating the safety, tolerability, and clinical efficacy of a one-time intravenous infusion of TN-201 at a dosage of 3e13 vg/kg. Following this phase, an independent safety review will provide guidance on whether to increase the dose to 6e13 vg/kg and/or to add more patients to the initial cohort.

The anticipation around the MyPeak-1 study's data release is building, as there is growing interest in treatments for HCM, a condition that has recently gained more visibility. The progress of Tenaya's TN-201 therapy is being closely watched by investors and the medical community alike.

In other recent news, Tenaya Therapeutics has undergone significant changes in its research leadership team and board, alongside a series of analyst ratings. Notably, board member Jin-Long Chen resigned, a departure said to be voluntary and unrelated to disagreements with the firm's management or operations.

Concurrently, Kathy Ivey, Ph.D., previously Vice President of Gene Therapy Research, has been promoted to Senior Vice President, Research, while Timothy Hoey, Ph.D., transitioned to an advisory role. Barry J. Byrne, M.D., Ph.D., a pediatric cardiologist, and genetic therapy expert, has joined Tenaya’s Scientific Advisory Board.

In the financial analysis realm, William Blair initiated coverage of Tenaya Therapeutics with an Outperform rating, indicating a positive outlook for Tenaya's gene therapy candidates, particularly TN-201 and TN-401. Canaccord Genuity maintained a Buy rating on Tenaya, but lowered the price target to $16.00, following the company's first-quarter 2024 earnings report.

Both firms anticipate the initial data from the first cohort of patients involved in the TN-201 program to be available in the second half of 2024. These are among the recent developments that continue to shape the trajectory of Tenaya Therapeutics.

InvestingPro Insights

As Tenaya Therapeutics (NASDAQ:TNYA) forges ahead with its MyPeak-1 study for TN-201, a closer look at the company's financial health and market performance adds depth to the narrative. InvestingPro data indicates that Tenaya holds a market capitalization of $246.55 million, with a notably high negative P/E ratio of -1.88, reflecting investor concerns about profitability.

Moreover, the company's stock has experienced significant volatility, with a 1-week price total return of -13.35% and a 1-month price total return of -19.78%, underscoring the uncertainty surrounding the stock's short-term movements.

Among the InvestingPro Tips, it's worth highlighting that Tenaya carries more cash than debt on its balance sheet, which may provide some financial flexibility as it continues its clinical trials. However, the company is quickly burning through cash, which could impact its runway for ongoing and future research. Analysts have revised their earnings upwards for the upcoming period, suggesting some optimism in the market despite the company's recent stock price challenges.

For investors seeking a comprehensive analysis, InvestingPro offers additional insights, including 11 more tips for Tenaya Therapeutics. These could further inform investment decisions, especially considering the high-stakes nature of biotech investing. To explore these tips and gain a deeper understanding of Tenaya's potential, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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