TVTX Stock Slides 6% On Everest Deal, Erases Some Losses As Analyst Sees 49% Upside

• H.C. Wainwright analysts said the early data and the drug’s overall profile are “pointing in the right direction.”
• Civorebrutinib has the potential to become “a best-in-class” treatment in its category, it added.
• Travere will pay Everest Medicines $112.5 million upfront.

Shares of Travere Therapeutics (TVTX) fell as much as 6% on Tuesday but recovered some of the losses after H.C. Wainwright raised its price target on the stock to $67 from $57 and kept a ‘Buy’ rating, an upgrade that followed the company’s announcement expanding its lineup of rare-kidney-disease treatments by licensing a promising new drug.  

The fresh price target implies a potential upside of about 49% from the stock’s last close.

TVTX’s Licensing Deal

The licensing deal, announced Tuesday with China’s Everest Medicines, gives Travere exclusive rights to develop and sell the drug civorebrutinib in the United States and all other markets outside China and certain countries in East and Southeast Asia. Civorebrutinib is an oral pill still in early testing that is designed to calm overactive parts of the immune system that can damage the kidneys in rare diseases. These conditions include primary membranous nephropathy, focal segmental glomerulosclerosis, and minimal change disease—illnesses that currently have limited treatment options and leave many patients with few good choices.

Early results from a small clinical study in patients with one of these kidney conditions were encouraging. The drug quickly lowered harmful antibodies and excess protein in the urine, helped more patients reach remission, and kept kidney function stable for up to a year, with few side effects reported so far. H.C. Wainwright analysts said the early data and the drug’s overall profile are “pointing in the right direction” and that civorebrutinib has the potential to become “a best-in-class” treatment in its category.

Travere will pay Everest Medicines $112.5 million upfront. If the drug succeeds in later testing and reaches the market, Travere could pay up to about $1.03 billion in additional milestone payments, plus ongoing royalties on sales ranging from the high single digits to low double digits.

Travere plans to study civorebrutinib next in patients with primary membranous nephropathy and certain forms of focal segmental glomerulosclerosis and minimal change disease, with the possibility of testing it in other related conditions later. The agreement is still subject to standard regulatory approvals, including antitrust clearance.

How Did Retail Traders React?

On Stocktwits, retail sentiment around TVTX stayed within the ‘bullish’ territory while message volume remained at ‘high’ levels.

A Stocktwits user said that they are skeptical of the licensing deal until they see more data.

Another cheered the deal as “big news.”

TVTX stock has gained about 177% over the past 12 months. 

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