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On Monday, Raymond (NSE:RYMD) James analyst Ryan Deschner upgraded Trevi Therapeutics (NASDAQ:TRVI) stock from Outperform to Strong Buy, significantly raising the price target to $29.00 from the previous $9.00. The $384 million market cap company has seen impressive momentum, with a 51% return over the past year according to InvestingPro data. The upgrade follows positive results from Trevi’s Phase 2a RIVER trial for its drug Haduvio, which is being developed to treat refractory chronic cough (RCC).
Deschner highlighted the impressive efficacy of Haduvio in reducing cough frequency. In the trial, Haduvio achieved a 57% placebo-adjusted reduction in 24-hour cough frequency at Day 21 for the 108mg dosage. This result was not only substantially higher than the 34.4% reduction seen in a Phase 2b trial of GSK’s camlipixant but also exceeded the reduction observed in Haduvio’s own Phase 2a trial for idiopathic pulmonary fibrosis-related chronic cough (IPF-CC). Analyst consensus remains strongly bullish, with InvestingPro data showing price targets ranging from $7 to $21.
Trevi Therapeutics now stands out in the field, as its drug Haduvio is the only one to have shown clinical statistical significance in reducing cough in both IPF-CC and RCC. This distinction came after Merck (NSE:PROR)’s P2X3 antagonist failed in IPF-CC trials. According to Deschner, Haduvio’s dual mechanism of action, which works both peripherally and centrally, sets it apart as a unique and differentiating feature, potentially opening the door to a wide range of chronic cough indications.
Looking ahead, Trevi Therapeutics is preparing for a Phase 2b readout in IPF-CC in the first half of 2025. Deschner believes that the success of the Phase 2a trial and subsequent safety, tolerability, and efficacy data have significantly reduced the risk associated with the upcoming Phase 2b results. The company maintains a strong financial position with a healthy current ratio of 7.38 and minimal debt, according to InvestingPro. For deeper insights into Trevi’s financial health, valuation metrics, and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Trevi Therapeutics reported significant advancements with its drug Haduvio, following positive results from its Phase 2a RIVER trial. The trial demonstrated a 67% reduction in 24-hour cough frequency from baseline in patients with refractory chronic cough (RCC) and idiopathic pulmonary fibrosis (IPF). Needham responded to these results by raising Trevi’s stock target to $25, citing the drug’s potential market impact given the large population affected by RCC. Meanwhile, Stifel also increased its price target for Trevi to $12, reflecting optimism about the upcoming results and Haduvio’s potential efficacy. Clear Street maintained its Buy rating with an $11 target, emphasizing Trevi’s strategic focus on second-line RCC patients and the competitive advantage following Merck’s withdrawal of its gefapixant application. The analysts highlight Haduvio’s potential as a leading treatment option in the RCC market, particularly given the absence of FDA-approved therapies. These developments underscore Trevi’s strategic positioning as it prepares to discuss further steps with the FDA.
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