Trevi Therapeutics’ Strong Market Potential and Revenue Opportunities Highlighted in Buy Rating

Oren Livnat, an analyst from H.C. Wainwright, has initiated a new Buy rating on Trevi Therapeutics (TRVI).

Oren Livnat has given his Buy rating due to a combination of factors that highlight Trevi Therapeutics’ strong potential in the market. The company is advancing Haduvio for both refractory chronic cough (RCC) and Idiopathic Pulmonary Fibrosis chronic cough (IPF-CC), with promising Phase 2a data in RCC suggesting a more derisked path to approval than the market currently acknowledges. Livnat believes that TRVI can achieve over $1 billion in revenue from RCC alone, with IPF-CC offering another significant revenue opportunity, especially given its orphan drug status.
Despite Trevi’s current market cap of approximately $627 million, which seems to undervalue the strong data from the RIVER trial, Livnat sees potential for Haduvio to be best-in-class in both IPF-CC and RCC. Concerns about funding for Phase 3 trials are noted, but Livnat argues that strong data should mitigate these worries. Additionally, while there have been discussions about the adverse event profile in the RIVER trial, the strength of the data suggests that lower doses or different dosing regimes could improve this profile. The specialty pricing strategy for Haduvio, assumed at $55,000, further supports the Buy rating, given the limited options for IPF-CC patients and the RCC population resistant to P2X3 drugs.

In another report released on May 23, JonesTrading also maintained a Buy rating on the stock with a $25.00 price target.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRVI in relation to earlier this year.