Shares of Trevi Therapeutics, Inc. (TRVI) tumbled 5.76% in after-hours trading on Thursday following the release of the company's third-quarter 2025 financial results and the announcement of a potential $200 million stock offering. The biopharmaceutical firm, which focuses on developing treatments for chronic cough and neurologically mediated disorders, reported figures that fell short of investor expectations and revealed plans that could lead to significant share dilution.
According to the company's financial report, Trevi Therapeutics posted a net loss of $11.802 million for the quarter, with earnings per share (EPS) coming in at -$0.08. While this loss was narrower than the -$0.13 per share reported in the same quarter last year, it still represents a significant financial burden for the company. Operating expenses reached $13.916 million, resulting in a negative income from operations of $13.916 million. These figures highlight the ongoing challenges faced by Trevi in its pursuit of bringing new therapies to market.
Adding to investor concerns, Trevi Therapeutics announced plans for an offering of up to $200 million of common stock and filed for a mixed shelf offering. This news, coupled with the quarterly loss, likely triggered fears of potential share dilution and put additional downward pressure on the stock price. Despite the company reporting a strong cash position of $194.9 million, which is expected to provide runway into 2028, the market's reaction suggests that investors are focusing on the near-term financial challenges and the potential impact of the proposed stock offering on existing shareholders.
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