SAN DIEGO, CA – A recent filing with the Securities and Exchange Commission has revealed that Elizabeth E. Reed, the Senior Vice President, General Counsel, and Corporate Secretary of Travere Therapeutics, Inc. (NASDAQ:TVTX), sold 4,387 shares of the company's common stock. The transaction, which took place on September 9, 2024, fetched an average price of $11.52 per share, totaling over $50,538.
This sale follows the vesting of performance restricted stock units (PSUs) that were granted to Reed on January 31, 2023. The PSUs, which covered 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 issuer on September 5, 2024. The vested shares increased Reed's (OTC:REED) total ownership in Travere Therapeutics to 83,020 shares following the transaction.
The sale was conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of trading on non-public information. This plan also included the sale of shares to cover tax obligations incurred upon the vesting of the PSUs.
Travere Therapeutics, previously known as Retrophin (NASDAQ:TVTX) Inc., is a biopharmaceutical company focused on the development of therapies for rare diseases. Based in San Diego, the company has a strong commitment to advancing treatments for patients with unmet medical needs.
Investors and market watchers often monitor insider transactions for insights into a company's financial health and the confidence level of its executives. Transactions like these are publicly disclosed to ensure transparency and provide investors with critical information regarding the financial movements of company insiders.
In other recent news, Travere Therapeutics has been making significant strides with its drug, FILSPARI, which recently received full FDA approval for the treatment of adult patients with primary Immunoglobulin A nephropathy (IgAN) at risk of disease progression. This approval, supported by the long-term results from the PROTECT Study, is expected to expand the eligible patient population from an initial estimate of 30,000-50,000 to approximately 70,000, potentially leading to increased sales in coming years.
In line with these developments, Citi has maintained its Buy rating on Travere Therapeutics and raised the price target to $23.00. The firm suggests that FILSPARI has the potential to become an essential therapy for kidney health, aligning with recent draft guidelines from the Kidney Disease: Improving Global Outcomes (KDIGO).
On the financial front, Travere Therapeutics reported FILSPARI sales reaching $27.1 million in Q2, a 37% increase over Q1. The company also reported a solid financial position, with $325.4 million in cash and securities, supporting its operations into 2028. BofA Securities has also reaffirmed its Buy rating on Travere Therapeutics, citing the company's strategic positioning and the recent growth driven by the increasing demand for FILSPARI.
These recent developments underscore Travere's ongoing commitment to establishing FILSPARI as a foundational therapy for IgAN. As the company progresses, it anticipates further growth acceleration for FILSPARI following the upcoming PDUFA date for full approval.
InvestingPro Insights
Amidst the recent insider transaction at Travere Therapeutics, Inc. (NASDAQ:TVTX), where Elizabeth E. Reed sold a portion of her company shares, investors may be keen to understand the broader financial context of the company. According to InvestingPro data, Travere Therapeutics currently has a market capitalization of approximately $988.27 million. The company's Price to Earnings (P/E) ratio stands at -6.8, highlighting that it is not currently profitable. This aligns with an InvestingPro Tip indicating that analysts do not expect the company to be profitable this year.
The Price to Book (P/B) ratio for the last twelve months as of Q2 2024 is notably high at 64.94, which suggests that the stock is trading at a premium compared to the company's book value. This could be reflective of investor sentiment and the speculative nature of the biopharmaceutical industry, where future potential often weighs heavily on stock valuations. Moreover, the company has experienced significant returns over various periods, with a one-week price total return of 33.96% and a one-month price total return of 50.76%, as per InvestingPro data. This could indicate a recent uptick in investor confidence or reaction to specific company news.
One of the InvestingPro Tips highlights that Travere Therapeutics is quickly burning through cash, which is a crucial consideration for investors, given that cash burn is a common concern in the biopharmaceutical sector where research and development costs can be substantial. Additionally, the company's gross profit margins have been weak, with a gross profit margin of -31.44% over the last twelve months as of Q2 2024.
For those interested in further insights and detailed analysis, InvestingPro offers additional tips for Travere Therapeutics, providing a more comprehensive understanding of the company's financial health and market position. There are 12 more InvestingPro Tips available for Travere Therapeutics, which can be found at: https://www.investing.com/pro/TVTX.
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