On Thursday, H.C. Wainwright adjusted its outlook on Trevena (NASDAQ:TRVN), a biopharmaceutical company, by reducing its price target on the company's stock. The new price target is set at $5.00, decreased from the previous $9.00. Despite this change, the firm continues to hold a Buy rating on the stock.
The adjustment comes as the analyst acknowledges the potential of TRV045, Trevena's novel S1P receptor modulator, which is being considered for the treatment of diabetic neuropathy pain and epilepsy. Trevena has reported positive results from two proof-of-concept studies, namely the PainCart Study and the TMS study.
These studies provided evidence of TRV045's central nervous system activity and its analgesic effects in a capsaicin-induced model of neuropathic pain.
The analyst from H.C. Wainwright expressed a positive view on the profile of TRV045 based on the outcomes of the studies conducted. The treatment's characteristics have been identified as strong indicators for its candidacy in addressing the specified medical conditions.
However, the reduction in the price target is attributed to the uncertainties surrounding the early-stage asset and concerns regarding Trevena's ability to properly develop it. The complexities involved in advancing a drug through the development pipeline often entail significant risk, which appears to be factored into the revised price target.
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