Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
On Monday, Citi analyst Carly Kenselaar increased the price target on Travere Therapeutics (NASDAQ:TVTX) stock to $35.00, up from the previous target of $31.00, while continuing to recommend a Buy rating for the company’s shares. The adjustment reflects the analyst’s positive outlook on the company’s growth prospects, particularly for its drug FILSPARI. The company’s stock, currently trading at $21.98, has shown remarkable momentum with a 144.77% gain over the past six months, according to InvestingPro data.
The optimism stems from two key anticipated developments in 2025. Firstly, the expected approval of FILSPARI for the treatment of FSGS (Focal Segmental Glomerulosclerosis) in the fourth quarter of 2025, following a supplemental New Drug Application (sNDA) filing projected for the end of the first quarter of 2025. Secondly, the potential easing of REMS (Risk Evaluation and Mitigation Strategies) monitoring requirements for IgAN (IgA nephropathy) from monthly to quarterly, with a PDUFA (Prescription Drug User Fee Act) date set for August 28, 2025. The company’s strong liquidity position, with a current ratio of 2.08, provides financial flexibility to support these regulatory initiatives. The analyst believes that if the less stringent REMS monitoring is approved, it would also apply to FSGS treatment.
Kenselaar anticipates this regulatory change to accelerate the uptake of FILSPARI in 2025, with two specific accelerations in the drug’s ramp-up: a lighter REMS requirement beginning in the third quarter of 2025 and the start of FSGS uptake in the fourth quarter of the same year. The expectation is that the high number of nephrologists who treat both IgAN and FSGS will facilitate a strong adoption of FILSPARI for FSGS treatment.
The report further suggests that the current stock price does not fully account for the potential market penetration of FILSPARI in FSGS, nor does it reflect its use in treating Homocystinuria (HCU), a rare genetic disorder. As a result, the analyst sees additional upside potential for the stock.
The revised price target to $35 and the reiteration of a Buy rating underscore Citi’s confidence in Travere Therapeutics’ prospects, as the company navigates through pivotal regulatory milestones and market expansions for its therapeutic offerings. With analyst targets ranging from $22 to $47 and impressive revenue growth of 60.55% in the last twelve months, the company shows promising potential. For deeper insights into Travere’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro, where you’ll find the detailed Pro Research Report covering what really matters about this emerging biotech company.
In other recent news, Travere Therapeutics reported its fourth-quarter 2024 earnings, surpassing analyst expectations. The company posted an earnings per share (EPS) of -$0.47, outperforming the forecasted -$0.64. Revenue also exceeded predictions, reaching $74.79 million compared to the anticipated $71.08 million. Despite these positive results, Travere’s stock experienced a decline of 10.9% in aftermarket trading. The company continues to see strong growth in its product sales, particularly with VILSPARI, which contributed significantly to the revenue increase. Travere anticipates further expansion in VILSPARI sales and is preparing for new product launches, including a supplemental new drug application for FSGS by the end of Q1 2025. Analyst firms have been closely monitoring these developments, noting Travere’s strategic focus on nephrology and its robust performance in the past quarter. The company remains well-capitalized, with cash and equivalents totaling $370.7 million as of December 31, 2024, supporting its ongoing growth initiatives.
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