Shares of Trevi Therapeutics, Inc. (TRVI) experienced a sharp 5.76% decline in after-hours trading on Thursday, following the release of the company's third-quarter 2025 financial results and the announcement of a new stock offering. The biopharmaceutical firm, which focuses on developing treatments for chronic cough and neurologically mediated disorders, faced a negative reaction from investors despite showing some improvements in its financial position.
According to the company's Q3 report, Trevi Therapeutics posted a net loss of $11.8 million, or $0.08 per share, which was an improvement from the $13.2 million loss in the same period last year. While the loss per share beat analysts' expectations of a $0.10 loss, the company's ongoing negative earnings continue to concern investors. The firm reported operating expenses of $13.916 million, highlighting the substantial costs associated with its research and development efforts.
Adding to investor worries, Trevi Therapeutics announced a new offering of up to $200 million of common stock. While this move aims to bolster the company's financial position, with cash and equivalents reported at $194.9 million at the end of Q3, it also raises concerns about potential dilution for existing shareholders. Despite the company's assertion that its current cash runway extends into 2028, the market's immediate reaction suggests skepticism about the long-term impact of this financial strategy on shareholder value.
Comments