On Wednesday, B.Riley analyst increased the stock price target for Trevi Therapeutics (NASDAQ:TRVI) to $11.00 from the previous $6.00 while reaffirming a Buy rating on the company's stock.
According to InvestingPro data, analyst targets for TRVI range from $7 to $21, with the stock showing impressive momentum, gaining nearly 200% over the past year. The upgrade follows a series of positive developments for Trevi's leading cough treatment candidate, Haduvio (Nalbuphine extended release [ER]).
Mamtani highlighted the successful clearance of a sample size re-estimation for Phase IIb CORAL study in patients with chronic cough and idiopathic pulmonary fibrosis (IPF-CC), which allows the trial to continue without modifications. This keeps the study on track for a second-quarter readout.
Moreover, updates from the Human Abuse Potential (HAP) study showcased Haduvio's lower "drug liking" scores compared to an active comparator, supporting the case for the drug to remain unscheduled.
The favorable results build upon earlier Phase IIa CANAL study data, where Trevi's Haduvio demonstrated approximately a 50% reduction in daytime and 24-hour cough frequency over placebo, outperforming peers' treatments in the same indication. The dual mechanism of action of Haduvio is also expected to provide similar benefits in refractory chronic cough (RCC) as in IPF-CC.
The analyst's increased confidence in the success of Haduvio for both IPF-CC and RCC indications has led to a reassessment of the likelihood of success—now estimated at 60% for IPF-CC and 40% for RCC. This reassessment is a key driver for the price target increase.
The completion of patient enrollment for the Phase IIa RCC study on October 21, 2024, with a 21-day 24-hour cough frequency readout pending, is anticipated to potentially broaden the market's view of Haduvio's target market.
Furthermore, the recent $50 million financing has extended Trevi's cash runway to the end of 2026, which Mamtani believes mitigates near-term financing concerns. InvestingPro analysis reveals the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 7.38, indicating robust liquidity.
The analyst's outlook for Trevi Therapeutics remains optimistic as these developments continue to unfold. Want deeper insights? Access the comprehensive Pro Research Report for TRVI and 1,400+ other stocks through InvestingPro, featuring detailed financial health metrics and expert analysis.
In other recent news, Trevi Therapeutics has made significant strides in its operations. The biopharmaceutical company has priced its public offering of 12.5 million shares at $4.00 each, aiming to raise $50 million. The offering attracted a mix of new and existing investors, including Adage Capital Partners (WA:CPAP) LP and Vivo Capital. Leerink Partners, Stifel, and Oppenheimer & Co. are managing the offering.
Trevi Therapeutics also reported positive results from a human abuse potential study for its oral nalbuphine drug, Haduvio. The study showed a statistically significant lower "Drug Liking" at clinical doses compared to an active comparator, marking a significant milestone in the drug's development process.
Moreover, the company has made progress in its ongoing clinical trials, including the CORAL Phase 2b trial for chronic cough associated with idiopathic pulmonary fibrosis, and the RIVER trial for refractory chronic cough, with results expected by the first half of 2025.
Financially, Trevi Therapeutics reported a Q3 2024 net loss of $13.2 million, primarily due to increased research and development expenses for ongoing clinical trials for Haduvio. Despite this, the company's cash and equivalents stand at $65.5 million, projected to last into the second half of 2026.
In terms of analyst ratings, Oppenheimer has maintained an Outperform rating for Trevi Therapeutics, reflecting confidence in the potential of Haduvio, with price targets ranging from $6 to $21. These recent developments highlight Trevi Therapeutics' continued progress in its clinical trials and financial standing.
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