- 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).
For further details see:
Travere Therapeutics: Strong Sell, Ticking Time Bomb, We Are Passing