B.Riley's Optimistic Rating Brings Hope for Trevi Therapeutics

B.Riley's Positive Outlook for Trevi Therapeutics

B.Riley recently reaffirmed a Buy rating on Trevi Therapeutics (NASDAQ: TRVI), setting a price target of $6. This decision highlights the firm’s confidence in Trevi's ongoing focus on its lead drug candidate, Haduvio, an oral nalbuphine ER, which is currently undergoing extensive clinical trials.

Current Progress in Clinical Trials

Trevi Therapeutics is making notable strides in its Phase IIb CORAL trial aimed at treating idiopathic pulmonary fibrosis chronic cough (IPF-CC). With 50% enrollment already achieved, this crucial milestone positions the company well for a sample size re-estimation assessment expected soon. The results from this assessment, along with a six-week treatment period, are anticipated to provide valuable insights moving forward.

Human Abuse Potential Trial Insights

In addition, the company is preparing to disclose results from its Human Abuse Potential (HAP) trial by year-end. While recent patient recruitment has been slower, particularly among recreational drug users, Trevi is optimistic about achieving full enrollment. The trial is now expected to wrap up soon, with only a few more patients needed.

Updates on the RIVER Trial

Conversely, the Phase IIa RIVER trial results have been delayed and are now expected in early 2025. This change is attributed to the plan for over-enrollment to ensure a balanced proportion of participants suffering from moderate to severe symptoms. Upcoming updates will detail the total number of enrolled patients, showing a 1.7:1 favorable ratio for those with severe symptoms.

Future Plans and Expectations

Apart from these trials, Trevi's respiratory physiology study is continuing according to schedule, utilizing an open-label methodology. This study aims to better understand Haduvio's mechanism in varying severities of IPF. Initial data is projected for release in the first half of 2025, leading up to an end of Phase 2 meeting targeted for mid-2025 to discuss the IPF CC indication and a potential registration-enabling trial by year-end.

Despite some timeline adjustments, Trevi Therapeutics is looking forward to several catalysts that could positively impact its stock price by the end of 2024 and into early 2025. B.Riley suggests that potential investors maintain interest, particularly in light of the recent developments and any perceived hurdles.

Analyst Support and Market Response

Recently, various analyst firms, including Raymond James and H.C. Wainwright, have begun covering Trevi Therapeutics, with many giving favorable ratings. Although the firm reported a net loss of $12.4 million during its second quarter earnings call, the outlook remains generally positive. Trevi's funding has been secured through 2026, allowing it to continue its trial advancements without immediate financial constraints.

The Financial Landscape

Recent financial updates have shown Trevi Therapeutics holding a unique position within its market space. The company's current market capitalization is approximately $218.5 million, reflecting a solid standing despite recent profitability challenges. The biotech sector is often characterized by high expenses related to clinical development, which can strain profitability.

Stock Resilience and Investor Sentiment

Despite facing recent hurdles, Trevi's stock has displayed extraordinary resilience. With a year-to-date price total return of 125.37%, investor sentiment appears largely positive. However, its stock did experience a setback recently, demonstrating a one-week price total return of -9.31%. This drop could suggest a reactive sentiment to changes in trial timelines.

Frequently Asked Questions

What is Trevi Therapeutics focused on developing?

Trevi Therapeutics is focused on developing Haduvio, an oral nalbuphine ER, intended for use in chronic cough related to idiopathic pulmonary fibrosis.

What was B.Riley's price target for Trevi Therapeutics?

B.Riley has set a price target of $6 for Trevi Therapeutics, expressing optimism about its future performance.

How is the CORAL trial progressing?

The CORAL trial is currently at 50% enrollment and is expected to proceed with a sample size re-estimation assessment soon.

When are results from the HAP trial expected?

Results from the Human Abuse Potential (HAP) trial are anticipated to be released in December.

What recent financial challenges has Trevi faced?

Trevi recently reported a net loss of $12.4 million, although the company has funding secured until 2026 to continue advancing its trials.

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