Friday saw EF Hutton maintain a positive outlook on Trevi Therapeutics (NASDAQ:) shares, reiterating a Buy rating with a steady price target of $21.00. The optimism stems from the progress of Trevi’s clinical trials, particularly the Phase 2b CORAL trial, which is investigating treatments for chronic cough in patients with idiopathic pulmonary fibrosis (IPF). The trial has reached a significant milestone, enrolling half of its intended participants.
The ongoing study is set to undergo a sample size re-estimation (SSRE) after the participants complete six weeks of treatment. The results of this re-estimation are anticipated in December 2024 and could lead to three potential outcomes: maintaining the current sample size, increasing it, or assessing the trial for futility. The final topline results of the CORAL trial are expected in the first half of 2025.
Another study, the HAP trial, has finished dosing, and results are also expected by December 2024. Additionally, the Phase 2a RIVER trial for renal cell carcinoma (RCC) is on track, with topline results projected in early 2025.
EF Hutton’s analysis of Trevi’s prospects includes modeling for Haduvio, the company’s product aimed at suppressing coughs associated with IPF and refractory chronic cough (RCC). The firm applies a 70% probability of success (POS) for IPF treatments and a 50% POS for chronic cough. Their financial model incorporates a 30% discount rate and the possibility of additional capital raises affecting the final share count.
The valuation method used by EF Hutton involves a combination of Free Cash Flow to the firm (FCFF), discounted EPS (dEPS), and sum-of-the-parts (SOP) models. These models are equal-weighted, averaged, and rounded to the nearest whole number, which supports their 12-month price target for Trevi Therapeutics.
In other recent news, Trevi Therapeutics has reported significant advancements in its clinical trials. The company’s Phase 2b CORAL trial, aimed at treating chronic cough in idiopathic pulmonary fibrosis patients, has reached 50% of its enrollment target.
Moreover, Trevi has completed dosing in its Human Abuse Potential study, with topline results expected in December 2024. The Phase 2a RIVER trial, which focuses on refractory chronic cough treatment, has reached its planned sample size, with topline results expected in the first quarter of 2025.
Analyst firms Raymond James, H.C. Wainwright, and EF Hutton have initiated coverage on Trevi Therapeutics. Raymond…
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