Biopharmaceutical company Travere Therapeutics (NASDAQ: TVTX), specializes in the development, commercialization, and distribution of therapies for the treatment of rare diseases.
TVTX stock prices have decreased 6.6% in the past year, after a year of sharp highs and lows.
Some Things to Worry About
The company is currently not profitable and is not expected to become profitable over the next three years, at least. Moreover, the loss per share has also been widening persistently on a year-over-year basis for the past few quarters, which is a concern.
We also noted that a significant volume of insider selling activities has taken place over the past three months, which is another point to worry about for the near-term prospects. Notably, one sell transaction was made in October last year, and four selling activities took place in November. Again, earlier this month, four sell transactions were made by four insiders.
In May last year, the company’s most anticipated drug — sparsentan — was rejected by the Food and Drug Administration due to a lack of substantial data. The company had its hopes pinned on the drug, a treatment for a rare kidney disorder called focal segmental glomerulosclerosis.
Expert Confident
Nonetheless, William Blair analyst Tim Lugo thinks that the company is a good bet, and that sparsentan will eventually be approved. Lugo also believes the drug will be a major driver of stock prices.
Incidentally, in December, Travere produced strong data in the phase 1/2 COMPOSE study with pegtibatinase in the treatment of homocystinuria, a genetic disorder of the metabolism of amino acid methionine. This also adds potential value to the shares of Travere.
“We continue to view the progress of sparsentan as the main driver of stock performance over the near term for shares of Travere and pegtibatinase as a promising pipeline asset,” explained Lugo.
The analyst was also encouraged by the FDA’s initiative to work with the company to find a way for accelerated approval of the drugs and believes that this helps “further solidify Travere’s leadership position in the space.”
The rest of Wall Street also seems to have the same positive opinion on Travere as Lugo. The consensus rating for Travere is a Strong Buy based on six Buys and one Hold. The TVTX stock forecast shows an average price target of $40.20.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
