|Bid||2.4600 x 1000|
|Ask||2.5200 x 3200|
|Day's Range||2.4700 - 2.6300|
|52 Week Range||0.4600 - 3.6800|
|Beta (5Y Monthly)||2.97|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Despite the recent pullback, Trevena (TRVN) stock has had an excellent 2020 with shares rocketing 182% year-to-date. According to H.C. Wainwright analyst Douglas Tsao, there’s a lot of fuel left in the tank.Tsao’s confidence is based on the imminent launch of Olinvyk, the company's recently approved opioid agonist for the treatment of moderate to severe acute pain in adults. Olinvyk has been designated Schedule 2 status by the DEA and will hit the market this month.Trevena has just revealed its price plan for the drug; Olinvyk will be sold in three sizes: 1 and 2mg vials for bolus dosing costing $17.50 and $25.75, respectively, and a 30mg vial for patient-controlled analgesia (PCA) dosing, which will go for $110. Across anticipated surgical procedures, Trevena estimates an average cost of $100 a day.“This is modestly above what we’d modeled, although certainly within the same zone,” Tsao said. “While Olinvyk’s price represents a meaningful premium to morphine at $15/day, we think it strikes an appropriate balance between pricing at a level that should allow formulary access while optimizing revenues for the size of high-risk patient population that should represent the sweet spot of adoption in the early going.”The company is also gearing up for a promotional blitz and is in the process of hiring a 40-person salesforce through partner Syneos Health. The campaign will begin in 1Q21 and will initially target hospitals and ambulatory surgery centers (ASCs).In comparison to hospitals, because of the shorter stay, ASC patients are likely to make less use of Olinvyk. However, getting the drug on formulary should be a faster process. ASCs can then act as “beachheads,” forming a base for further advancement.“Once ASC doctors gain experience with the drug,” Tsao concluded, “Trevena expects many to champion Olinvyk placement on their hospital formularies, opening the door to a more lucrative market.”To this end, the 5-star analyst rates TRVN shares a Buy along with a $5 price target. Investors could be pocketing a 111% gain, should Tsao’s thesis play out over the coming months. (To watch Tsao’s track record, click here)3 additional analysts have posted Trevena reviews over the last 3 months and all have reached the same conclusion – Buy. The Strong Buy consensus rating is backed with a $5.25 average price target, indicating possible upside of 121%. (See Trevena stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Trevena (TRVN) will provide updates on its newly launched drug and other pipeline products when it releases its third-quarter 2020 results.
Is (TRVN) Outperforming Other Medical Stocks This Year?