Trevi Therapeutics IPO: What You Need To Know

The Street will gain access this week to an investment in the only opioid marketed in the U.S. and Europe without being classified as a controlled substance.

The IPO

Trevi Therapeutics, Inc. will issue nearly 4.7 million shares on the Nasdaq under ticker TRVI, according to the firm’s S-1 filing. Priced between $14 and $16, the offering represents 30.2 percent of outstanding shares and is expected to bring in about $85.87 million.

Lead underwriters include SVB Leerink, Stifel and BMO Capital Markets.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

The Company

The Connecticut biotech targets chronic pruritis, chronic cough related to idiopathic pulmonary fibrosis, and levodopa-induced dyskinesia related to Parkinson’s disease.

Its nalbuphine ER is in a Phase 2b/3 clinical trial for chronic pruritis that's expected to yield top-line data in the first half of next year. The candidate is an oral extended release form of a drug that the U.S. has used for pain management for more than two decades.

It is the only opioid the U.S. and Europe have approved for marketing without classification as a controlled substance.

Trevi intends for the product to be the first in the U.S. and Europe that addresses pruritis — a market expected to grow from $10.8 billion in 2016 to $14.3 billion in 2022.

The Finances

Trevi incurred a net loss of $20.55 million in 2018 compared to $12.86 million in 2017. It has not yet generated revenue.

Since its start, Trevi has been backed by life sciences investors such as TPG Biotech, Omega Funds, Lundbeckfonden Ventures, New Enterprise Associates and Aperture Venture Partners.

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