SVB starts Trevi Therapeutics at OP; PT $6

Trevi Logo

SVB Securities initiated coverage of Trevi Therapeutics (NASDAQ:TRVI) with an “outperform” rating and $6 price target. The stock closed at $1.99 on Nov. 21.

TRVI is a clinical-stage biopharmaceutical company developing Haduvio, an oral extended release of nalbuphine, to treat chronic cough in idiopathic pulmonary fibrosis (CC-IPF) and chronic pruritus associated with prurigo nodularis (PN).

Analyst Thomas Smith writes that Trevi reported encouraging results from the Phase 2 CANAL study in CC-IPF showing Haduvio’s compelling efficacy on cough suppression as well as other patient- and clinician-reported cough outcomes.

“To date, Haduvio is the only drug that demonstrated statistically significant benefits on chronic cough in a placebo-controlled trial for CC-IPF,” he added.

In addition, he said treatment with Haduvio led to significant improvement on pruritus in PN with fast onset of action in the Phase 2b/3 PRISM study, “making Haduvio the first and only oral therapy to show encouraging anti-pruritic benefits in PN.”

While initiation of a Phase 2b dose-ranging study in CC-IPF is expected in the first half of 2023, Mr. Smith said that further development of Haduvio in a pivotal study in PN is pending a partnership as Trevi focuses its current resources on the chronic cough franchise.

“We see Haduvio’s potential as a first-in-class/best-in-class treatment for CC-IPF that could be positioned as a first-line monotherapy or concomitant treatment with antifibrotics, given the lack of approved drugs to address cough in IPF,” Mr. Smith said.

Haduvio’s potential in additional chronic cough indications could provide attractive optionality and become a long-term growth driver for Trevi shares, he added.