On Thursday, H.C. Wainwright adjusted the price target for shares of Travere Therapeutics (NASDAQ:TVTX) to $18.00 from the previous $23.00 while retaining a Buy rating on the stock. The revision follows Travere's announcement of a voluntary enrollment pause for a significant clinical study.
Travere Therapeutics recently disclosed a halt in the enrollment for the Phase 3 HARMONY study of pegtibatinase, which is being developed as a treatment for classical homocystinuria (HCU). The company cited the need for manufacturing improvements to scale up for commercial production as the reason for the pause. The management of Travere anticipates that the study's enrollment will resume in 2026.
The analyst from H.C. Wainwright noted that the pause in enrollment is not related to any safety or efficacy concerns regarding pegtibatinase. Instead, the delay is due to the necessity of addressing manufacturing scale-up enhancements. The firm believes that the manufacturing issues are resolvable and has therefore reaffirmed its Buy rating on the stock.
The unexpected delay in pegtibatinase's progression to the market has led to adjustments in financial models, prompting the reduction in the price target. Despite the setback and the new timeline for the study's resumption, the analyst's outlook on Travere Therapeutics remains positive, reflecting confidence in the company's ability to overcome the current manufacturing challenges.
In other recent news, BofA Securities, Canaccord Genuity, and Citi have maintained their Buy ratings on Travere Therapeutics. BofA Securities revised its price target for Travere to $18.00, down from the previous $19.00, while Canaccord Genuity and Citi raised their targets.
InvestingPro Insights
Travere Therapeutics (NASDAQ:TVTX) has been a topic of interest following recent developments, and a closer look at InvestingPro data and tips provides additional context. The company's market cap stands at $1.15 billion, which is indicative of its mid-cap status in the biotech industry. Notably, the stock has seen a significant price increase, with a one-year total return of 73.67%. This performance aligns with the InvestingPro Tip highlighting a strong return over the last year, suggesting that investors have been optimistic about the company's prospects despite the recent challenges.
However, the company operates with a negative gross profit margin of -31.44% over the last twelve months as of Q2 2024, which is a point of concern as it indicates that Travere is spending more on the cost of goods sold than it is earning from sales. This data corroborates the InvestingPro Tip about the company suffering from weak gross profit margins. Additionally, the company's stock is trading near its 52-week high, at 97.92% of the peak, and it is trading at a high Price/Book multiple of 75.95, which may suggest the stock is currently valued at a premium by the market.
For investors seeking more depth, there are 14 additional InvestingPro Tips available for Travere Therapeutics, which can be explored for a more comprehensive analysis of the company's financial health and stock performance. These insights could be particularly valuable given the recent adjustments in financial models due to the delay in the HARMONY study's enrollment.
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