Home Uncategorized Trevi Therapeutics is raising $ 55 million in a private placement

Trevi Therapeutics is raising $ 55 million in a private placement


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)

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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.

Investment dissertation

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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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