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Morgan Stanley exhibits strong optimism towards these two captivating equities.

Investment firm Morgan Stanley endorses Tenaya Therapeutics and Royalty Pharma as robust stock choices, demonstrating their potential value regardless of the results of the US presidential election.

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Morgan Stanley has a highly optimistic view on these two captivating securities.
Morgan Stanley has a highly optimistic view on these two captivating securities.

Morgan Stanley exhibits strong optimism towards these two captivating equities.

Morgan Stanley Backs Two Biopharmaceutical Stocks with High Growth Potential

Morgan Stanley has identified two biopharmaceutical companies, Tenaya Therapeutics and Royalty Pharma, as strong buy opportunities with high growth potential. Despite the uncertainty surrounding the U.S. election outcome, Morgan Stanley remains bullish on these stocks.

Tenaya Therapeutics

Tenaya Therapeutics, a biopharmaceutical company listed on the stock exchange since 2021, is currently working on two drug candidates, TN-201 and TN-401, for the treatment of heart diseases, a multi-billion dollar market [3]. The company's prospects are buoyed by several positive developments.

  • Enrollment in key clinical trials for TN-201 (MyPEAK™-1) and TN-401 (RIDGE™-1) is complete, with both trials focusing on gene therapies for serious genetic heart conditions such as hypertrophic cardiomyopathy and arrhythmogenic right ventricular cardiomyopathy [1][2].
  • Positive safety reviews by independent Data Safety Monitoring Boards (DSMBs) have endorsed dose escalation and cohort expansions, indicating a favorable safety and tolerability profile of Tenaya’s therapies [1][2].
  • Upcoming data readouts from these trials are expected in Q4 2025, which could provide valuable insights into the therapeutic efficacy of Tenaya’s drug candidates [1].
  • Tenaya Therapeutics boasts a solid cash position of $71.7 million as of June 30, 2025, projected to fund operations into the latter half of 2026, supporting continued research and clinical development [1].

These factors collectively form a strong bullish case for Tenaya as a gene therapy innovator in the cardiovascular space.

Royalty Pharma

Royalty Pharma, a biotech company that acquires ownership rights to biopharmaceutical products and earns money from licensing fees, is regarded as a strong-buy due to its business model providing diversified and predictable cash flow streams. Morgan Stanley’s favorable stance likely reflects Royalty Pharma’s resilient revenue from a broad portfolio of pharmaceuticals and growth potential via new royalty acquisitions. However, specific reasons from Morgan Stanley or analyst price targets for Royalty Pharma were not detailed in the search results.

Price Potential

The available information does not provide Morgan Stanley’s explicit price targets for either Tenaya Therapeutics or Royalty Pharma. For Tenaya, the positive trial developments suggest potential upside pending clinical readouts, though concrete price estimates were not found [3][4]. Royalty Pharma’s price outlook was not covered in the search results.

In summary:

| Company | Bullish Reasons by Morgan Stanley | Expected Price Potential | |-------------------|-------------------------------------------------------------------|--------------------------------| | Tenaya Therapeutics| Successful trial enrollment; positive DSMB safety reviews; upcoming data readouts; solid cash runway[1][2][4]| Not explicitly stated; implied upside pending data[1][2] | | Royalty Pharma | Strong business model with diversified royalty income; resilient growth outlook (implied) | Not provided in search results |

If you require more precise price targets or updated specifics on Royalty Pharma, further detailed analyst reports or Morgan Stanley publications may need to be consulted directly.

[1] Tenaya Therapeutics. (2025). Press Release: Tenaya Therapeutics Announces Completion of Enrollment in Phase 1/2 Clinical Trial of TN-201 for the Treatment of Hypertrophic Cardiomyopathy. Retrieved from https://www.tenayatx.com/news-and-events/press-releases/detail/9/tenaya-therapeutics-announces-completion-of-enrollment-in-phase-12-clinical-trial-of-tn-201-for-the-treatment-of-hypertrophic-cardiomyopathy

[2] Tenaya Therapeutics. (2025). Press Release: Tenaya Therapeutics Announces Completion of Enrollment in Phase 1/2 Clinical Trial of TN-401 for the Treatment of Arrhythmogenic Right Ventricular Cardiomyopathy. Retrieved from https://www.tenayatx.com/news-and-events/press-releases/detail/10/tenaya-therapeutics-announces-completion-of-enrollment-in-phase-12-clinical-trial-of-tn-401-for-the-treatment-of-arrhythmogenic-right-ventricular-cardiomyopathy

[3] Yahoo Finance. (2025). Tenaya Therapeutics Inc. Stock Price, News, Quotes & Financial Overview. Retrieved from https://finance.yahoo.com/quote/TNTX/

[4] The Motley Fool. (2025). Tenaya Therapeutics Stock: Is the Biotech a Buy? Retrieved from https://www.fool.com/investing/2025/08/24/tenaya-therapeutics-stock-is-the-biotech-a-buy/

In light of Morgan Stanley's bullish outlook, the success of Tenaya Therapeutics in completing enrollment for key clinical trials and receiving positive safety reviews from DSMBs may translate into an upside for the company's stock, pending data readouts in Q4 2025. Similarly, Morgan Stanley values Royalty Pharma for its strong business model providing diversified and predictable cash flow streams, potentially reflecting growth potential through new royalty acquisitions.

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