Trevena (TRVN) AI Stock Analysis

• Market Cap: $1.28M
• Dividend Yield: N/A
• Average Volume (3M): 2.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -82.94%
• EPS Growth: 33.10%
• Country: US
• Employees: 23
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -46.91
• Shares Outstanding: 863,788
• 10 Day Avg. Volume: 1,491
• 30 Day Avg. Volume: 2,323
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.99
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.00
• Price Target Upside: 237.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Trevena's overall stock score is low, driven by severe financial challenges including negative equity and persistent operational losses. Technical analysis indicates a bearish trend, while valuation metrics further underscore the stock's unattractiveness. Recent corporate events, such as leadership changes and delisting, contribute additional risk and uncertainty.

Positive Factors

Financial Strategy

The company announced an amendment to its royalty financing agreement with R-Bridge, bringing in $2MM in upfront cash and reducing its outstanding liabilities by $10MM.

Market Rating

Focus remains on advancing TRV-045; analysts reiterate a Market Outperform rating and $3 risk-adjusted, DCF-derived price target on Trevena.

Product Development

TRV045 should be an interesting asset for potential acquirors as an S1P-R1 specific modulator, with potential effectiveness in diabetic neuropathic pain and epilepsy.

Negative Factors

Employment and Management

The company recently terminated most of its employees, including three senior managers, leaving them with only four employees.

Financial Position

By the end of the third quarter, the company reported cash and cash equivalents of $13.5 million, which is insufficient to support the company's operation for a year.

Stock Market Listing

The company announced receiving a de-listing notice from Nasdaq, and its common stocks are now trading on the pink open market.

Trevena Business Overview & Revenue Model

Company Description

Trevena, Inc. (TRVN) is a biopharmaceutical company primarily focused on the development and commercialization of novel medicines for patients with central nervous system (CNS) disorders. The company's core products are innovative therapeutics designed to address unmet medical needs, with a particular emphasis on pain management and neurological disorders. Trevena's lead product, OLINVYK, is an opioid medication approved by the U.S. Food and Drug Administration (FDA) for the management of acute pain severe enough to require an intravenous opioid analgesic and for which alternative treatments are inadequate.

How the Company Makes Money

Trevena makes money primarily through the commercialization of its pharmaceutical products, particularly OLINVYK, which generates revenue from sales to hospitals and healthcare facilities. The company's revenue model is driven by product sales, licensing agreements, and potential milestone payments from strategic partnerships. Trevena also explores collaborations with other pharmaceutical companies to expand the reach and development of its drug candidates, which may involve upfront payments, milestone achievements, and royalty agreements. As a biopharmaceutical entity, Trevena's financial success is highly dependent on the market adoption of its approved drugs and the successful development and approval of its pipeline candidates.

Trevena Financial Statement Overview

Summary

Trevena's financial health is concerning with declining revenues, persistent losses, and negative equity. The company faces significant challenges in achieving profitability and sustaining operations, necessitating strategic interventions to improve financial stability and performance.

Income Statement

Trevena's income statement shows significant challenges. The Gross Profit Margin is negative for the TTM (Trailing-Twelve-Months) at -265.63%, indicating cost inefficiencies. The Net Profit Margin is also negative at -6219.74%, reflecting substantial losses. Revenue has decreased sharply compared to the previous year, with a Revenue Growth Rate of -82.50%, suggesting declining sales. The EBIT and EBITDA margins are negative, at -5870.75% and -7172.57% respectively, highlighting ongoing operational losses.

Balance Sheet

The balance sheet presents a precarious financial position with negative Stockholders' Equity in the TTM, resulting in a negative Equity Ratio. The Debt-to-Equity Ratio is not meaningful due to negative equity. Return on Equity (ROE) is also not calculable. These figures indicate potential solvency issues and high financial risk.

Cash Flow

Trevena's cash flows are under stress, with a negative Free Cash Flow Growth Rate of -18.01%, showing deteriorating cash generation. The Operating Cash Flow to Net Income Ratio is 0.80, suggesting cash losses align with net losses. The Free Cash Flow to Net Income Ratio at 0.80 further underscores ongoing cash burn issues.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
547.00K	3.13M	-418.00K	567.00K	3.07M	31.00K
	Gross Profit
-1.45M	1.46M	-3.44M	-387.00K	2.89M	-77.00K
	EBIT
-32.10M	-35.29M	-56.38M	-51.92M	-29.48M	-26.58M
	EBITDA
-39.23M	-35.29M	-55.51M	-51.08M	-28.66M	-25.61M
	Net Income Common Stockholders
-34.02M	-40.29M	-53.67M	-51.16M	-29.37M	-28.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.48M	32.98M	38.32M	66.92M	109.40M	35.80M
	Total Assets
66.78M	40.60M	48.68M	80.12M	127.74M	46.99M
	Total Debt
17.39M	35.23M	19.77M	7.10M	7.80M	13.46M
	Net Debt
-15.50M	2.26M	-18.55M	-59.82M	-101.60M	-18.84M
	Total Liabilities
25.25M	48.26M	33.08M	15.49M	23.67M	16.92M
	Stockholders Equity
41.53M	-7.66M	15.60M	64.63M	104.07M	30.08M
Cash Flow		Free Cash Flow
-27.11M	-33.08M	-51.51M	-50.21M	-21.42M	-23.67M
	Operating Cash Flow
-27.09M	-33.03M	-51.48M	-50.20M	-21.39M	-23.67M
	Investing Cash Flow
-21.00K	-41.00K	18.00K	-16.00K	3.47M	25.58M
	Financing Cash Flow
5.70M	26.31M	23.50M	7.73M	95.02M	-2.50M

Trevena Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRVN, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 1.64, below the 50-day MA of 1.69, and below the 200-day MA of 3.71, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRVN.

Trevena Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XERS	66 Neutral	$703.51M	―	222.83%	―	23.89%	16.86%
MNKD	58 Neutral	$1.59B	56.94	-35.00%	―	43.50%	―
Sector *	49 Neutral	$6.90B	0.02	-54.05%	2.46%	24.91%	-3.14%
SCYX	47 Neutral	$34.20M	―	-48.42%	―	-93.70%	-163.86%
CARA	44 Neutral	$23.43M	―	-221.25%	―	-59.08%	18.99%
TRVN	31 Underperform	$1.28M	―	145.94%	―	-82.94%	33.10%

Trevena Corporate Events

Trevena Appoints Katrine Sutton as New CFO

Trevena, Inc. has appointed Katrine Sutton as its new principal financial and accounting officer, replacing Barry Shin, effective November 26, 2024. Sutton, who has been with the company since 2019, brings extensive experience from her previous role at Synergy Pharmaceuticals. This leadership change is amicable and not due to any disagreements within the company.

Trevena Faces Leadership Changes Amidst Financial Challenges

Trevena, Inc. is undergoing significant changes amidst financial challenges, including director resignations and cost-cutting measures, while continuing to explore strategic alternatives for its assets. Despite a reverse stock split, the company faced delisting from Nasdaq, moving its stock to OTC Pink Sheets. The company reported a reduced third-quarter loss and maintains its focus on CNS disorder treatments, with OLINVYK and investigational drugs like TRV045 being central to its pipeline.