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On Wednesday, H.C. Wainwright initiated coverage on Trevi Therapeutics (NASDAQ:TRVI), a clinical-stage biopharmaceutical company, with a Buy rating and a price target of $21.00. According to InvestingPro data, analyst targets for TRVI range from $11 to $29, with the company currently valued at $626.75 million. The firm recognized the potential of Trevi’s product, Haduvio, which is in development for two separate indications: refractory chronic cough (RCC) and Idiopathic Pulmonary Fibrosis chronic cough (IPF-CC).
Analysts at H.C. Wainwright highlighted the strength of the RIVER Phase 2a data in RCC, which was released earlier this year. They noted the results as compelling and suggested that Trevi Therapeutics has a more derisked path to approval for RCC than is currently reflected in the market’s valuation of the company.
The firm also expressed optimism about the revenue potential for Haduvio, estimating that it could generate over $1 billion in RCC alone. Additionally, the lead indication for Trevi’s product, IPF-CC, is also expected to generate significant revenue. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 15.38, indicating robust liquidity to fund its development programs. The Phase 2b data for this indication is anticipated to be released later this quarter, and the analysts have observed promising data so far.
H.C. Wainwright’s coverage comes with a positive outlook on Trevi’s ability to commercialize Haduvio for IPF-CC independently due to the orphan nature of the indication. This could represent another revenue opportunity exceeding $1 billion for the company.
The initiation of coverage by H.C. Wainwright reflects a vote of confidence in Trevi Therapeutics’ potential within the biopharmaceutical industry, especially in the treatment of chronic cough conditions. The company’s progress in clinical trials and the forthcoming data readouts are key factors in this optimistic assessment. This confidence is reflected in the stock’s impressive 140% return over the past year. For deeper insights into TRVI’s valuation and growth potential, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Trevi Therapeutics reported a narrower-than-expected loss for Q1 2025, with an earnings per share (EPS) of -$0.09, surpassing the forecasted -$0.13. The company demonstrated a net loss of $10.4 million, an improvement from the previous year’s $10.9 million loss, while reducing research and development expenses to $7.8 million. Analysts from B.Riley and Stifel maintained their Buy ratings on Trevi, with price targets of $20 and $15, respectively, following promising data from the Phase 2a RIVER trial of Haduvio, a treatment for refractory chronic cough. Raymond (NSE:RYMD) James also upheld a Strong Buy rating and set a $29 price target, highlighting Haduvio’s strong efficacy signal in the trial.
Trevi’s recent presentation at the American Thoracic Society conference revealed significant reductions in cough frequency and patient-reported improvements in quality of life. The trial data indicated a 67% reduction in 24-hour cough frequency from baseline, with a 57% reduction on a placebo-adjusted basis. Safety data showed adverse events occurring mostly during initial exposure, but lessening over time. Analysts expressed optimism about Haduvio’s dual mechanism of action, suggesting its potential application in a broader range of interstitial lung diseases.
The company is preparing for the release of top-line data from its Phase 2b CORAL trial, which could inform future development paths. Trevi’s management expressed confidence in the ongoing trials and is exploring potential partnerships for international markets.
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