How Biotech Stock Trevena Could Almost Triple In Value By 2022

In a report published Monday, Brean Capital analyst Jonathan Aschoff initiated coverage of

with a Buy rating and a price target of $14. Analyst Jonathan Aschoff said, "TRV130 is Trevena's leading G protein biased ligand being developed for post-operative pain, and we believe it has the potential to dissociate opioid analgesia from a substantial amount of adverse effects." TRV130 has been shown to provide more pain relief than a standard 4mg dose of morphine, as well as have a faster onset of action. Results from the Phase 2b trial are expected in 3Q15 and a Phase 3 trial is scheduled to begin in 1Q16. Aschoff expects TRV130 to commence sales in 2018 in the US and in the following year in the EU. This is expected to generate $349 million in global sales in 2022. In the report Brean Capital noted, "TRV027 is Trevena's β-arrest in biased ligand in development for acute heart failure, and we believe it has the potential to become the first safe RAS targeting therapy in AHF. TRV027 has been shown to be effective against stable heart failure in a Phase 2a trial by not significantly altering heart rate or cardiac index, but instead by producing beneficial hemodynamic effects while preserving renal function." Trevena had inked an option agreement with Actavis, which includes a potential upfront exercise fee of $65 million and up to $365 million in milestone payments upon delivery of data. Trevena would also receive royalties of 10-20 percent on the global sales of TRV027. Aschoff expects TRV027 to commence selling in 2019 and yield royalties of $78 million for Trevena in 2022.