TVTX - Travere Therapeutics: Strong Sell Ticking Time Bomb We Are Passing

• Travere Therapeutics (TVTX) is a US-based pharmaceutical company with a lead asset Sparsentan that targets rare kidney diseases (IgAN and FSGS).
• We do not think the FDA will approve Sparsentan due to the drug's inability to drive material eGFR benefit even though it demonstrated substantial proteinuria benefit.
• MOA standpoint: even the ACEi+ARB combination doesn't drive eGFR benefit over mono ACEI or ARB, and there isn't enough data to speculate that the ERA component can drive eGFR benefits.
• The company has an EV of USD 1.57 Bn; we believe the risk-reward for this valuation is not attractive.
• If Sparsentan fails, we believe the stock could collapse to USD 10 (cash value).

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