TRVI Stock Forecast & Price Target

Trevi Therapeutics has demonstrated a strengthened financial position with a cash balance of $194.9 million, providing a runway that is expected to sustain operations into 2028, which is crucial for supporting the advancement of Haduvio toward Phase 3 development. The company has shown steady operational progress with a narrowed net loss of $11.8 million compared to $13.2 million the previous year, indicating improved financial health amidst ongoing development efforts. Furthermore, the positive outlook is bolstered by the projected sales opportunity of approximately $1.5 billion for Haduvio in treating idiopathic pulmonary fibrosis chronic cough, alongside an additional potential of around $3 billion in refractory chronic cough.

Trevi Therapeutics reported a decline in Q3 R&D expenses to $10.1 million, attributed to the wind-down of earlier clinical studies, indicating a reduction in active development efforts that could impact future revenue potential. Key risks identified include potential delays or failures in the Haduvio development programs, significant competition in its therapeutic indications, and the necessity for future capital raises before becoming profitable, all of which contribute to uncertainty surrounding its financial viability. Additionally, the concentration of shareholding, with approximately 13% held by a single institutional investor, raises concerns about liquidity and investor sentiment in the face of possible negative outcomes during clinical trials.