SVB Leerink raised its price target for Travere Therapeutics (NASDAQ:TVTX) to $37 from $27 and maintained an “outperform” rating after the company reported interim data from the Phase 3 PROTECT study with sparsentan in IgA nephropathy (IgAN) which exceeded expectations. The stock closed at $17.82, up $2.37, on Aug. 16.
IgA nephropathy is a chronic kidney disease that progresses over 10-to-20 years, and it can lead to end-stage renal disease. It is caused by deposits of the protein immunoglobulin A (IgA) inside the filters (glomeruli) in the kidney.
“In our view, investor confidence heading into this data readout was low, given the lack of precedent with sparsentan in IgAN, combined with the regulatory uncertainty in focal segmental glomerulosclerosis/FSGS,” writes analyst Joseph Schwartz.
“Despite this trepidation, sparsentan exceeded expectations, demonstrating a 49.8% mean reduction in proteinuria from baseline after 36 weeks of treatment, a greater than three-fold reduction versus irbesartan, or the active control.
Mr. Schwartz said Travere expects to submit an application for accelerated approval in the U.S. in the first half of 2022 and also plans to submit a conditional marketing authorization application in the EU.