On Friday, TD Cowen reiterated its Buy rating on shares of Travere Therapeutics (NASDAQ:TVTX), maintaining a price target of $15.00. The firm's stance comes even as Travere announced a voluntary pause in enrollment for its peg HARMONY trial, which is now expected to complete in 2026. This delay will consequently push back the topline readout, originally anticipated for the same year.
The company has expressed confidence in pegtibatinase, the drug under trial, and anticipates strong patient interest once enrollment recommences. Despite this setback, TD Cowen believes that the impact on investor sentiment towards the stock will be minimal. The analyst noted that the pause in the trial was a secondary concern for investors and predicted that the stock price would not experience significant movement as a result.
Travere Therapeutics is focused on the development of pegtibatinase, which is being studied for its potential in treating a specific metabolic disorder. The delay in the trial process is not expected to diminish the optimism surrounding the drug's prospects, according to the company's outlook.
The firm's price target is currently under review, suggesting that adjustments may be forthcoming based on the latest developments and additional information that may emerge. This review process will take into account the recent changes in the peg HARMONY trial timeline and any other factors that could influence the valuation of Travere Therapeutics.
In summary, TD Cowen's maintained Buy rating and price target for Travere Therapeutics reflects a continued positive outlook for the company's stock, despite the recent delay in its clinical trial schedule. The firm anticipates that the pause will have a limited effect on the stock's performance in the near term.
In other recent news, Travere Therapeutics has experienced significant developments. The company has paused enrollment in its Phase 3 HARMONY study, which is evaluating pegtibatinase for classical homocystinuria, due to manufacturing scale-up issues. Analysts from Citi, H.C. Wainwright, and BofA Securities adjusted their price targets for Travere, maintaining their Buy ratings despite the pause.
In contrast, Travere's drug Filspari has received full FDA approval for the treatment of adult patients with primary Immunoglobulin A nephropathy, leading to a potential increase in sales. Filspari sales reached $27.1 million in the second quarter of 2024, a 37% increase over the first quarter. Furthermore, Travere Therapeutics reported a solid financial position, with $325.4 million in cash and securities, supporting its operations into 2028.
InvestingPro Insights
To enrich the article with relevant data and insights, we can add the following paragraph:
Despite the clinical trial delay, Travere Therapeutics (NASDAQ:TVTX) has shown strong financial performance in recent months. According to InvestingPro data, the company's stock has demonstrated impressive returns, with a 66% increase over the past month and an 81.64% gain over the last three months. This positive momentum is further reflected in the stock trading near its 52-week high, at 97.92% of that peak.
However, investors should be aware of some financial challenges. InvestingPro Tips highlight that Travere is quickly burning through cash and suffers from weak gross profit margins. The company's revenue for the last twelve months as of Q2 2023 stood at $177.64 million, with a notable revenue growth of 47.42% during this period. Despite this growth, Travere is not yet profitable, with a negative gross profit of $55.86 million for the same period.
For those interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for Travere Therapeutics, providing a deeper understanding of the company's financial health and market position.
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