Buy Rating Affirmed for Trevi Therapeutics Amid Promising Clinical Advances and Solid Financial Position

Leerink Partners analyst Thomas Smith has reiterated their bullish stance on TRVI stock, giving a Buy rating yesterday.

Thomas Smith has given his Buy rating due to a combination of factors surrounding Trevi Therapeutics’ progress and expectations for their lead product, Haduvio. The company’s clinical trials are advancing as planned, with key studies in refractory chronic cough (RCC) and chronic cough associated with idiopathic pulmonary fibrosis (CC-IPF) showing potential. The ongoing Phase 2a RIVER study is fully operational across all sites, and the eagerly anticipated results are slated for the second half of 2024. These results could signal Haduvio’s efficacy in cough reduction for patients with varying severity of cough frequency. Additionally, the Phase 2b CORAL study is steadily moving forward with site activations and a sample size re-estimation expected later this year, indicating a well-structured approach to developing the drug’s clinical profile.

Smith’s optimism is also driven by the broader implications of Haduvio’s potential as a pioneering and possibly superior treatment option for CC-IPF, which currently lacks effective therapies for chronic cough. This positions Haduvio favorably as a potential first-line treatment or as a complement to existing antifibrotic medications. The drug’s potential is not limited to CC-IPF, as its application in RCC and other indications could significantly enhance the long-term valuation of Trevi Therapeutics. Furthermore, Smith acknowledges the company’s solid financial position, with sufficient capital to support operations into 2026, aligning with the upcoming critical milestones that could further propel the stock’s value.

In another report released yesterday, B.Riley Financial also reiterated a Buy rating on the stock with a $6.00 price target.

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Trevi Therapeutics (TRVI) Company Description:

Trevi Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in the development and commercialization of treatment for neurologically mediated conditions. It focuses on the formulation of nalbuphine ER, which use to treat chronic pruritus, chronic cough in patients with idiopathic pulmonary fibrosis, and levodopa-induced dyskinesia in patients with Parkinson’s disease. The company was founded by Thomas R. Sciascia and Jennifer L. Good on March 17, 2011 and is headquartered in New Haven, CT.