Trevi Therapeutics Announces Pricing of $50 Million Underwritten Offering

Rhea-AI Summary

Trevi Therapeutics (TRVI) has announced the pricing of an underwritten offering of 12,500,000 shares of common stock at $4.00 per share, aiming to raise $50 million before deducting underwriting costs. The offering, expected to close on December 17, 2024, includes participation from notable investors such as Adage Capital Partners LP, Frazier Life Sciences, and Vivo Capital.

The company, which is developing Haduvio™ (oral nalbuphine ER) for chronic cough treatment in idiopathic pulmonary fibrosis and refractory chronic cough, is conducting the offering through a shelf registration statement previously filed with the SEC. Leerink Partners, Stifel, and Oppenheimer & Co. are serving as joint book-running managers.

Positive

• Secured $50 million in new funding through stock offering
• Strong investor participation from established healthcare investors
• Multiple reputable financial institutions managing the offering

Negative

• Potential dilution for existing shareholders due to 12.5 million new shares
• Share price set at $4.00 represents new equity pricing level

Insights

Financial Analyst

This $50 million equity raise at $4.00 per share represents significant funding for Trevi Therapeutics' clinical development pipeline. The participation of notable healthcare investors like Frazier Life Sciences, MPM BioImpact and Vivo Capital adds credibility to the offering. With a market cap of about $320 million, this financing dilutes existing shareholders by approximately 15.6% but provides important capital for advancing Haduvio™ through clinical trials for chronic cough conditions. The pricing below recent trading levels suggests some pressure on valuation, though the strong syndicate of investors indicates institutional confidence in the company's prospects. This capital injection should extend Trevi's operational runway substantially.

Medical Research Analyst

The successful capital raise strengthens Trevi's position to advance Haduvio™ (oral nalbuphine ER) through its clinical development programs. The focus on both idiopathic pulmonary fibrosis (IPF) chronic cough and refractory chronic cough (RCC) represents significant market opportunities, as these conditions currently lack effective treatments. The backing from specialized healthcare investors suggests confidence in the clinical potential of Haduvio™. This funding should enable Trevi to reach key clinical milestones and potentially accelerate their development timeline, which is important for maintaining competitive positioning in the chronic cough therapeutic space.

NEW HAVEN, Conn., Dec. 16, 2024 /PRNewswire/ -- Trevi Therapeutics, Inc. (Nasdaq: TRVI), a clinical-stage biopharmaceutical company developing the investigational therapy, Haduvio™ (oral nalbuphine ER) for the treatment of chronic cough in idiopathic pulmonary fibrosis (IPF) and refractory chronic cough (RCC), today announced the pricing of an underwritten offering of 12,500,000 shares of its common stock at a price to investors of $4.00 per share, for total proceeds of $50 million, before deducting underwriting discounts and commissions and expenses payable by Trevi.  All of the shares in the offering are being sold by Trevi. The offering is expected to close on December 17, 2024, subject to satisfaction of customary closing conditions.

The financing includes participation from new and existing investors, including Adage Capital Partners LP, Frazier Life Sciences, Logos Capital, MPM BioImpact, Rubric Capital Management LP and Vivo Capital.  

Leerink Partners, Stifel and Oppenheimer & Co. are acting as joint book-running managers for the offering. Needham & Company is acting as lead manager for the offering. Jones and B. Riley Securities are acting as co-managers for the offering.

The shares are being offered by Trevi pursuant to a shelf registration statement on Form S-3 (File No. 333-273030), which was filed with the Securities and Exchange Commission (SEC) on June 29, 2023 and declared effective by the SEC on August 15, 2023. This offering is being made only by means of a prospectus supplement and the accompanying prospectus that form a part of the registration statement. The final terms of the offering will be disclosed in a prospectus supplement to be filed with the SEC. When available, copies of the prospectus supplement and the accompanying prospectus may also be obtained from Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com; or from Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Trevi Therapeutics, Inc.
Trevi Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing the investigational therapy Haduvio™ (oral nalbuphine extended-release) for the treatment of chronic cough in patients with idiopathic pulmonary fibrosis (IPF) and refractory chronic cough (RCC). Haduvio acts on the cough reflex arc both centrally and peripherally as a kappa agonist and a mu antagonist (KAMA), which are opioid receptors that play a key role in controlling cough hypersensitivity. Nalbuphine is not currently scheduled by the U.S. Drug Enforcement Agency. 

Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties and actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, statements about the anticipated closing of the underwritten offering and the expected gross proceeds of the offering, among other things, and other statements containing the words "believes," "anticipates," "plans," "expects," "may," and similar expressions. Risks that contribute to the uncertain nature of the forward-looking statements include: uncertainties related to market conditions and whether the conditions for the closing of the offering will be satisfied, as well as other risks and uncertainties, as well as other risks and uncertainties set forth in the "Risk Factors" section of Trevi's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC, and in any subsequent filings with the SEC.  All forward-looking statements contained in this press release speak only as of the date on which they were made. Trevi undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made except as required by law.

Investor Contact
Katie Barrett
Trevi Therapeutics, Inc.
203-304-2499
k.barrett@trevitherapeutics.com

Media Contact
Rosalia Scampoli
914-815-1465
rscampoli@marketcompr.com

 

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SOURCE Trevi Therapeutics, Inc.

FAQ

How much money is Trevi Therapeutics (TRVI) raising in its December 2024 offering?

Trevi Therapeutics is raising $50 million through an offering of 12,500,000 shares priced at $4.00 per share, before deducting underwriting costs.

Who are the major investors participating in TRVI's December 2024 stock offering?

Major investors include Adage Capital Partners LP, Frazier Life Sciences, Logos Capital, MPM BioImpact, Rubric Capital Management LP, and Vivo Capital.

What is the price per share for TRVI's December 2024 stock offering?

The offering price is $4.00 per share.

When is TRVI's December 2024 stock offering expected to close?

The offering is expected to close on December 17, 2024, subject to customary closing conditions.

Which investment banks are managing TRVI's December 2024 stock offering?

Leerink Partners, Stifel, and Oppenheimer & Co. are acting as joint book-running managers, with Needham & Company as lead manager, and Jones and B. Riley Securities as co-managers.