Tectonic Merges with Avrobio, Begins Nasdaq Trading

Tectonic Therapeutic successfully completed its reverse merger with Avrobio and is set to start trading on the Nasdaq under the ticker symbol TECX. In conjunction with the merger, Tectonic also finalized a $130 million private placement with a consortium of new and existing investors. This fresh influx of capital, combined with cash reserves, is projected to support the company's operations until mid-2027.

"We believe we are strongly positioned to enter the public markets at this time, with a solid financial foundation, investor syndicate, and leadership team, and with several potential catalysts over the next two years, setting the stage for meaningful value creation," stated Tectonic CEO Alise Reicin.

Tectonic is focusing on developing GPCR-targeted therapeutic proteins that serve medical needs currently unmet by small molecule treatments. The company's proprietary GEODe platform aims to address the common challenges associated with GPCR-targeted biologics.

The newly formed company plans to advance Tectonic’s lead program into a Phase II trial for Pulmonary Hypertension patients in the latter half of this year. The lead candidate, TX45, is a fusion molecule designed to activate the GPCR target of the hormone relaxin. Historically, relaxin was viewed as a promising drug for cardiovascular health, but prior studies failed to deliver the anticipated clinical benefits. Tectonic is optimistic that its protein engineering can overcome these challenges and establish relaxin as a viable therapeutic option.

In addition to TX45, Tectonic is selecting a clinical candidate for its second program aimed at treating hereditary hemorrhagic telangiectasia (HHT) later this year. Studies for this program are expected to commence by late 2025 or early 2026. HHT is the second most prevalent genetic bleeding disorder, and the program holds first-in-indication potential.

Before the merger, Avrobio was dedicated to developing curative Hematopoietic stem cells (HSC) gene therapies. After announcing encouraging Phase I/II results in May 2023, Avrobio sold its HSC gene therapy program for cystinosis to Novartis in June 2023 for $87.5 million. By January 2024, Avrobio announced it was halting further program development and exploring strategic alternatives, including a potential merger.

As part of the merger with Tectonic, Avrobio executed a 1-for-12 reverse stock split of its common stock. Upon the completion of the merger, former Avrobio shareholders collectively own approximately 24.8% of the combined company's outstanding common stock on a diluted basis, while former Tectonic shareholders hold about 75.2%.

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