Scotiabank has demonstrated increased confidence in Travere Therapeutics' (TVTX) market potential, raising its price target by 18.5% to $32 from the previous $27. The adjustment comes in response to Travere's recent announcement regarding plans to file a supplemental New Drug Application (sNDA) for their drug Filspari.
Strategic Regulatory Development
The decision to pursue an sNDA filing for Filspari represents a significant strategic move for Travere Therapeutics. According to Scotiabank analyst Greg Harrison, who maintains an Outperform rating on the company's shares, this regulatory strategy suggests constructive preliminary discussions with the Food and Drug Administration (FDA).
Harrison's analysis indicates that Travere would likely not proceed with an sNDA submission unless they had received positive signals from the FDA regarding potential approval. This perspective adds weight to the company's regulatory strategy and potential market opportunities.
Market Implications
The increased price target reflects growing optimism about Filspari's commercial prospects and Travere's overall market position. While regulatory approval is not guaranteed, the planned sNDA submission suggests a level of confidence in the drug's potential expanded applications.
The development carries particular significance for Travere's growth trajectory, as successful expansion of Filspari's approved indications could substantially impact the company's market valuation and commercial opportunities. However, stakeholders should note that final FDA approval remains subject to comprehensive regulatory review and assessment of supporting clinical data.
