Trevi Therapeutics (TRVI) stock has rocketed up over 63% in the past week on news that recent clinical trials have shown promising results. The strong upswing has been further fueled by the company’s recently announced Q4 financials which beat earning expectations. Analysts have responded positively, adjusting price targets upward, reflecting confidence in Trevi’s innovative treatment approach and anticipated future successes.
Progress on a Promising Treatment
Trevi Therapeutics is a clinical-stage biopharmaceutical company focused on developing Haduvio (oral nalbuphine extended-release) to treat chronic cough in patients with idiopathic pulmonary fibrosis (IPF) and refractory chronic cough (RCC). Haduvio has demonstrated a statistically significant reduction in chronic cough for both IPF and RCC patients and is unique as the first therapy in clinical development to achieve this.
Chronic cough is a common issue for up to 85% of the approximately 140,000 IPF patients in the U.S., causing substantial disease impact and potential for further health decline, including progression to more serious conditions or even a need for lung transplants. Refractory chronic cough, affecting approximately 2-3 million individuals in the U.S., is persistent and remains untreated as no therapies are approved, causing serious complications and economic burdens.
Trevi successfully achieved the primary endpoint in the Phase 2a RIVER trial, showcasing a marked reduction in cough frequency for patients with refractory chronic cough, suggesting Haduvio’s potential efficacy in treating RCC.
Expectation-beating Earnings
The company recently reported fourth-quarter results for 2024. Research and development expenses increased significantly to $9.3 million from $6.5 million year-over-year, primarily due to the progression and expansion of clinical trials such as the Phase 2b CORAL and Phase 2a RIVER, as well as the HAP study, and an increase in related personnel costs. Consequently, the net loss for the quarter expanded to $11.4 million from $7.8 million. Yet, the GAAP EPS of -$ 0.11 exceeded expectations by $0.01.
Analysts following the company have responded to recent news positively. For instance, B. Riley analyst Mayank Mamtani has adjusted the price target on TRVI shares upward from $11 to $20 while maintaining a Buy rating, noting compelling insights from the recent Phase IIa RIVER trial focusing on refractory chronic cough, which provides significant de-risking indications for the forthcoming Phase IIb IPF CC CORAL study with results expected in the second quarter of 2025.
Trevi Therapeutics is rated a Strong Buy overall, based on the recent recommendations of 10 analysts. The average price target for TRVI stock is $18.15, which represents a potential upside of 166.52% from current levels.
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