U.S. markets closed
  • S&P 500

    4,397.94
    -84.79 (-1.89%)
     
  • Dow 30

    34,265.37
    -450.03 (-1.30%)
     
  • Nasdaq

    13,768.92
    -385.08 (-2.72%)
     
  • Russell 2000

    1,987.92
    -36.12 (-1.78%)
     
  • Crude Oil

    84.83
    -0.72 (-0.84%)
     
  • Gold

    1,836.10
    -6.50 (-0.35%)
     
  • Silver

    24.34
    -0.37 (-1.50%)
     
  • EUR/USD

    1.1347
    +0.0030 (+0.26%)
     
  • 10-Yr Bond

    1.7470
    -0.0860 (-4.69%)
     
  • GBP/USD

    1.3555
    -0.0045 (-0.33%)
     
  • USD/JPY

    113.6100
    -0.4900 (-0.43%)
     
  • BTC-USD

    35,017.56
    +554.18 (+1.61%)
     
  • CMC Crypto 200

    870.86
    +628.18 (+258.85%)
     
  • FTSE 100

    7,494.13
    -90.88 (-1.20%)
     
  • Nikkei 225

    27,522.26
    -250.64 (-0.90%)
     

BMO Sees Compelling Valuation For Trevi Therapeutics At Current Levels

  • Oops!
    Something went wrong.
    Please try again later.
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • TRVI

Trevi Therapeutics Inc (NASDAQ: TRVI) priced its 5.5 million share IPO at $10 May 7, and shares have been mostly trading at a discount since then.

The Analyst

Following the expiry of the IPO quiet period, BMO Capital Markets analyst Gary Nachman initiated coverage of shares of Trevi with an Outperform rating and $15 price target.

The Thesis

Trevi's key product Nalbuphine ER has a solid track record and substantial evidence supporting its mechanism of treating various chronic pruritus and cough conditions, analyst Nachman said in a Monday morning note.

Nalbuphine ER is an oral formulation of Nalbuphine, an injectable in use for decades to treat pain, and it is the only opioid-based pain drug not scheduled by the DEA, the analyst added.

The pipeline asset has shown positive clinical data in a large Phase 2b/3 trial in uremic pruritus associated with chronic kidney disease, and in a smaller Phase 2 study in prurigo nodularis, the lead indication, the asset achieved statistical significance in a post-hoc analysis for patients who completed the study on the higher dose, Nachman noted.

The analyst said prurigo nodularis is an area of high unmet need with a sizeable market opportunity.

A larger Phase 2b/3 study for the lead indication for which enrollment has begun, according to the analyst, has a good chance of success. Data from the study is expected in the first half of 2020, he added.

"We see a compelling valuation at current levels after recent IPO, with further optionality for Nalbuphine ER in additional indications beyond PN," BMO concluded.

Price Action

At last check, Trevi shares were edging up 2.7 percent to $10.26.

Related Links:

The Week Ahead In Biotech: ASCO Presentations Pick Up The Pace

Attention Biotech Investors: Mark Your Calendar For These June PDUFA Dates

Latest Ratings for TRVI

Jun 2019

Initiates Coverage On

Buy

Jun 2019

Initiates Coverage On

Outperform

Jun 2019

Initiates Coverage On

Buy

View More Analyst Ratings for TRVI
View the Latest Analyst Ratings

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.