Oppenheimer maintains Outperform on Trevi Therapeutics on Haduvio potential

Published 08/10/2024, 11:58
Oppenheimer maintains Outperform on Trevi Therapeutics on Haduvio potential

On Tuesday, Oppenheimer reaffirmed its Outperform rating and $9.00 price target for Trevi Therapeutics (NASDAQ:TRVI), a clinical-stage biopharmaceutical company.

The firm's endorsement follows an update from Trevi's management regarding the timeline for clinical results of its drug Haduvio.

The company anticipates a report in December from the human abuse potential (HAP) study of Haduvio, which could be a significant milestone. Success in this study could pave the way for favorable outcomes in next quarter's proof-of-concept trial for refractory chronic cough (RCC). A positive result in this trial could potentially tap into a multi-billion dollar market not currently factored into forecasts.

Trevi Therapeutics is also on schedule to release top-line Phase 2b data for Haduvio in idiopathic pulmonary fibrosis (IPF) chronic cough in the first half of 2025. This timeline assumes that the upcoming sample size re-estimation analysis in December does not lead to any changes in the study's scale or a conclusion of futility.

"We continue to see $500M+ US sales potential in IPF CC, and with shares trading at what we regard as a substantial discount to this opportunity alone, we see TRVI positioned for outperformance as Haduvio marks development progress," said the analysts.

In other recent news, analyst firms B.Riley, Raymond James, H.C. Wainwright, and EF Hutton have all maintained positive ratings for Trevi Therapeutics, with B.Riley setting a target of $6, Raymond James at $9, and EF Hutton at $21.

InvestingPro Insights

As Trevi Therapeutics (NASDAQ:TRVI) advances its clinical trials for Haduvio, InvestingPro data provides additional context to the company's financial position. With a market capitalization of $209.06 million, Trevi's stock has shown significant momentum, boasting a year-to-date price total return of 114.93% as of the latest data. This aligns with the optimistic outlook presented by Oppenheimer's Outperform rating and $9.00 price target.

However, investors should note that Trevi is currently operating at a loss, with an adjusted operating income of -$43.17 million over the last twelve months. This is reflected in two key InvestingPro Tips: the company is "quickly burning through cash" and "not profitable over the last twelve months." These points underscore the importance of the upcoming clinical results for Haduvio, as positive outcomes could potentially address these financial challenges.

On a positive note, another InvestingPro Tip indicates that Trevi "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company pursues its clinical development goals. For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Trevi's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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