Travere Therapeutics, Inc. (NASDAQ:TVTX) has reported a recent transaction involving its Chief Medical Officer, Jula Inrig, who sold shares in the company. The sale was executed on September 9, 2024, with a total of 2,191 shares sold at a price of $11.52 per share, amounting to over $25,000.
This transaction followed the vesting of performance restricted stock units (PSUs) which were initially granted to Inrig on January 31, 2023. These PSUs, covering 6,750 shares, vested upon the U.S. Food and Drug Administration's full approval of FILSPARI (sparsentan) in IgA Nephropathy, as confirmed by the company on September 5, 2024.
The sale of shares by Inrig was not a discretionary trade but was required to cover the tax withholding obligation associated with the settlement of vested PSUs. According to the company's equity incentive plans, a "sell to cover" transaction is mandated, which necessitates the sale of shares to fund the tax withholding obligation. This sale was conducted through a brokerage firm designated by Travere Therapeutics.
Following the sale, Inrig's ownership in Travere Therapeutics stands at 62,633 shares of common stock. This latest transaction provides investors with an insight into the stock dealings of one of the company's top executives, reflecting routine financial management related to vested equity incentives.
In other recent news, Travere Therapeutics has seen substantial progress with its drug, FILSPARI, which has received full FDA approval for treating adult patients with primary Immunoglobulin A nephropathy at risk of disease progression. The approval, supported by long-term results from the PROTECT Study, indicates FILSPARI's effectiveness in slowing kidney function decline over a two-year period. This development is expected to expand the eligible patient population from an initial estimate of 30,000-50,000 to approximately 70,000, leading to a projected sales increase in FY24.
Citi and BofA Securities have both maintained their Buy ratings on Travere Therapeutics, with Citi raising its price target to $23.00. Both firms cite the FDA approval and the potential of FILSPARI to become a key therapy for kidney health as reasons for their positive outlook.
Recent financial reports show FILSPARI sales reaching $27.1 million in Q2, a 37% increase over Q1. Travere Therapeutics also maintains a strong financial position, with $325.4 million in cash and securities, supporting its operations into 2028. These recent developments underscore Travere's ongoing commitment to establishing FILSPARI as a foundational therapy for IgAN.
InvestingPro Insights
Travere Therapeutics, Inc. (NASDAQ:TVTX) has recently been under the spotlight following a transaction by its Chief Medical Officer, and investors are keenly observing the company's financial health and stock performance. Based on the latest data from InvestingPro, Travere Therapeutics has a market capitalization of approximately $988.27 million, indicating its size and significance in the biopharmaceutical sector.
InvestingPro Tips suggest that the company is quickly burning through cash and is not expected to be profitable this year. These insights are particularly relevant given the recent sale of shares by an executive, which may raise questions about the company's cash flow and financial stability. Additionally, the Relative Strength Index (RSI) indicates that the stock is currently in overbought territory, which could imply that the stock's recent performance might lead to a potential pullback.
Despite these challenges, the company has seen significant returns over the last week, month, and three months, with a one-week price total return of 33.96%, a one-month return of 50.76%, and a three-month return of 76.89%. This robust performance is a critical factor for investors to consider, especially in light of the executive's stock sale.
For more detailed analysis and additional InvestingPro Tips related to Travere Therapeutics, investors can visit https://www.investing.com/pro/TVTX, which currently lists 12 more tips to help guide investment decisions.
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