CHESTERBROOK, Pa. - Trevena Inc . (NASDAQ:TRVN), a company specializing in central nervous system (CNS) disorder treatments, has declared a reverse stock split of its common stock at a 1-for-25 ratio, effective as of 12:01 a.m. ET on Tuesday, August 13, 2024. The adjustment is aimed at meeting the Nasdaq Capital Market's minimum bid price requirement for continued listing.
Following the reverse stock split, Trevena's common stock will trade on the Nasdaq Capital Market under the ticker symbol TRVN and a new CUSIP number, 89532E 307. Shareholders holding shares through a broker are advised to contact their broker for details, while other shareholders can direct inquiries to the company's transfer agent, Continental Stock Transfer & Trust Company.
Trevena is known for its work in developing innovative medicines for CNS disorders, including its approved product, OLINVYK® (oliceridine) injection, for managing acute pain in adults. The company's pipeline features investigational drug candidates for various conditions, such as diabetic neuropathic pain, epilepsy, acute migraine treatment, and opioid use disorder maintenance treatment.
In recent developments, Trevena's stock price targets have been adjusted by two analyst firms. H.C. Wainwright reduced its price target from $9.00 to $5.00, maintaining a Buy rating. This adjustment was due to uncertainties surrounding TRV045, despite positive results from the PainCart Study and the TMS study.
In a similar vein, JMP Securities reduced its price target for Trevena from $4.00 to $3.00, while keeping its Market Outperform rating. This change followed Trevena's latest financial report and corporate updates, which included a decision to scale back commercial support for its product OLINVYK to conserve capital and reallocate resources towards the development of TRV045.
InvestingPro Insights
As Trevena Inc. (NASDAQ:TRVN) undergoes a reverse stock split to sustain its Nasdaq Capital Market listing, investors are scrutinizing the company's financial health and stock performance. According to InvestingPro data, Trevena's market capitalization stands at a modest $4.08 million, reflecting the challenges the company faces in a competitive pharmaceutical landscape.
An InvestingPro Tip highlights that Trevena is rapidly burning through cash, which is a critical factor for investors considering the company's ability to fund ongoing research and development for CNS disorder treatments. Additionally, analysts are not optimistic about the company's sales trajectory, anticipating a sales decline in the current year.
The recent financial metrics provide a mixed picture: Trevena has seen an impressive revenue growth of 826.62% over the last twelve months as of Q1 2024. However, the company's operating income margin is notably negative at -1116.5% for the same period, and it has not been profitable over the last twelve months. These figures are essential for investors to consider as they reflect the company's current financial performance amidst its efforts to innovate in the CNS disorder space.
Investors can find additional insights and tips on Trevena by visiting the InvestingPro platform, which currently lists 11 more InvestingPro Tips for a deeper analysis of the company's financial health and stock performance.
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