Image source: Trevi Therapeutics
Trevi Therapeutics (COM) TRVI) announced on Thursday that it had reached a $ 55 million private placement agreement.
The company, based in New Haven, Connecticut, sells 4,580,526 common shares at a price of $ 1.90 per share, as well as pre-funded warrants to buy up to 24,379,673 common shares at a price of $ 1,899 per warrant.
Each warrant will have a strike price of $ 0.001 per share without an expiration date.
Frazier Life Sciences and Venrock Healthcare Capital Partners are co-leading private placement investors, with Fairmount and New Enterprise Associates involved in the deal.
Trevi is developing research therapy for treatment chronic itching associated with nodular prurigo (PN)
and chronic cough in patients with idiopathic pulmonary fibrosis (IPF).
These conditions have a common pathophysiology that is mediated through opioid receptors in the central and peripheral nervous systems.
Trevi’s therapy, called Haduvio, is an oral composition of prolonged-release nalbuphine that has been approved and sold as an injectable analgesic for more than 20 years in the United States and Europe.
Trevi Therapeutics began public trading in May 2019, earning $ 55 million in gross revenue of $ 10 per share. Since then, investors have had nothing to celebrate, but there are signs that better days lie ahead.
- As of December 31, 2021, the company had cash and cash equivalents of $ 36.8 million, so the latest private placement of $ 55 million is the most timely.
- We also have a lot of respect for investors in this round.
- Although detractors will say that the company is a pony with one trick with conveyors based on one candidate, Haduvio has demonstrated such broad clinical efficacy that we view it as a multifaceted therapeutic platform in a single drug.
- The global chronic cough category is $ 10 billion for the target market.
- The global itch category represents a total target market of $ 20 billion.
- There are no approved treatments for either chronic cough with IPF or itching associated with nodular prurigo.
- On February 24, 2022, Trevi announced statistically significant data from an interim analysis of a phase 2 Haduvio trial for chronic cough at IPF.
- The data was so strong that the company stopped trial registration to accelerate development.
- Even with stock growth over the past month and a half, we see significant value at the current level.
- In the next six months, the basic data that catalysts can provide to investors are expected:
- Itching in PN phase 2b / 3 data along the apex line is expected in Q2 2022
- Chronic cough in the IPF Phase 2 top line data is expected in Q3 2022
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