Buy Rating Affirmed for Trevena Amid Strategic Focus on Promising Drug TRV045

Analyst Douglas Tsao of H.C. Wainwright maintained a Buy rating on Trevena (TRVN – Research Report), reducing the price target to $5.00.

Douglas Tsao has given his Buy rating due to a combination of factors related to Trevena’s promising drug candidate TRV045 and strategic corporate decisions. TRV045, a novel S1P receptor modulator, has shown potential in treating diabetic neuropathy pain and epilepsy, with positive proof-of-concept studies and a favorable safety profile. The absence of drug-related lymphopenia, bradycardia, or blood pressure changes in studies sets TRV045 apart from other S1P modulators. Additionally, the ongoing collaboration with NIH to evaluate TRV045 as a disease-modifying agent for seizure prevention further underscores its potential.
Moreover, Tsao acknowledges Trevena’s strategic pivot away from Olinvyk’s commercial support to focus resources on TRV045 development. The company’s efforts to reduce annual expenses and workforce indicate a commitment to capital preservation and efficient allocation. Despite the early-stage risks of TRV045 and the uncertainties around Trevena’s development capabilities, the drug’s profile and the company’s cost-cutting measures contribute to the Buy rating, even as Tsao adjusts the price target to reflect these factors.

In another report released yesterday, JMP Securities also reiterated a Buy rating on the stock with a $3.00 price target.

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Trevena (TRVN) Company Description:

Trevena, Inc. is a biopharmaceutical company, which focuses on the development and commercialization of innovative treatment options that target and treat diseases affecting the central nervous system, or CNS. The company product pipeline consists of Olinvo, TRV250, and TRV734. Trevena was founded by Robert Joseph Lefkowitz, Scott DeWire, Howard A. Rockman, Jonathan Violin and Erin Whalen on November 9, 2007 and is headquartered in Chesterbrook, PA.