TVTX Stock On Track To Hit Near 20-Year Highs After Filspari Becomes The Only Approved FSGS Treatment

• On Monday, the U.S. FDA approved Filspari to reduce proteinuria in patients with focal segmental glomerulosclerosis, a rare kidney disorder.
• The company estimates that over 30,000 people in the U.S. with FSGS without nephrotic syndrome could be eligible for the treatment.
• Citi does not see a commercial setback despite a narrower label, according to The Fly.

Shares of Travere Therapeutics (TVTX) surged more than 40% in pre-market trading on Tuesday as bullish analyst reactions followed the U.S. Food and Drug Administration (FDA) approval of the company’s Filspari for a rare kidney disorder, making it the first approved treatment for the condition.

If the premarket levels hold after the opening bell, TVTX shares would surge to their highest since May 2005.

Filspari Becomes The Only Approved FSGS Treatment

On Monday, the U.S. FDA approved Filspari to reduce proteinuria in patients with focal segmental glomerulosclerosis (FSGS). FSGS is a serious condition that causes protein leakage in urine, leading to progressive kidney damage and potential failure. The company estimates that over 30,000 people in the U.S. with FSGS without nephrotic syndrome could be eligible for the treatment.

The decision follows a delayed review prompted by the FDA's request for additional data. Approval was supported by late-stage trial results showing Filspari reduced proteinuria by 48% over 108 weeks.

Brokerages turned bullish on Travere Therapeutics following the FDA approval. Canaccord raised its price target to $56 from $47 and maintained a ‘Buy’ rating, according to The Fly, projecting peak sales of $547 million for the drug by 2032.

Citi analyst Yigal Nochomovitz increased the firm’s price target to $53 from $48, keeping a ‘Buy’ rating. Citi said the approval in FSGS supports the increased target, adding that the narrower label is not seen as a commercial setback. Bank of America also lifted its target to $49 from $44 and reiterated a ‘Buy’ rating on the stock.

How Did Retail Traders React?

Retail sentiment on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours. Messages on the platform increased a whopping 3,200% during the same period, according to Stocktwits data.  

One user expects “swift uptake for this medicine.”

Year-to-date, the stock has slid around 21%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.