AI Sentiment: Bullish
Reason: Trevi Therapeutics has announced its IPO, expecting to raise around $50 million. The proceeds will be used to fund ongoing clinical development and general corporate purposes.
Trevi Therapeutics has announced the pricing of its initial public offering (IPO) of 5,500,000 shares of its common stock at a price of $10.00 per share. The gross proceeds from this offering are expected to be approximately $50 million, prior to deducting underwriting discounts, commissions, and other offering expenses. The shares will be listed on the NASDAQ Global Market under the ticker symbol "TRVI".
The company has also granted the underwriters a 30-day option to purchase up to an additional 825,000 shares of common stock at the initial public offering price, less underwriting discounts, and commissions. This is done to cover over-allotments, if any.
Trevi Therapeutics is a clinical-stage biopharmaceutical company focused on developing and commercializing Nalbuphine ER to treat serious neurologically mediated conditions. These conditions include chronic pruritus (itch), chronic cough in patients with idiopathic pulmonary fibrosis (IPF), and levodopa-induced dyskinesia (LID) in patients with Parkinson’s disease.
The net proceeds from the offering are expected to be used by the company to fund its ongoing clinical development of Nalbuphine ER for chronic pruritus in patients with prurigo nodularis, and for working capital and other general corporate purposes.
The offering is subject to customary closing conditions and is expected to close on May 7, 2019. SVB Leerink and Stifel are acting as joint book-running managers for the offering. Janney Montgomery Scott and BMO Capital Markets are also part of the underwriting team.