The shares of Trevena Inc (NASDAQ:TRVN) are up by over 70% after the clinical-stage biopharmaceutical company revealed positive phase 2b study results for its postoperative pain medication last night. According to the announcement, its phase 2b trial of TRV130, which is used for treating severe acute postoperative pain after abdominoplasty surgery, had positive results, meeting its primary endpoint of significant pain reduction in comparison with the placebo. On top of the positive results, TRV130 ended up offering better results than morphine in some pre-specified second measures, including lower vomiting, nausea, and hypoventilation events. Neil Singla, Chief Scientific Officer at Lotus Clinical Research and lead investigator in the study, said, “The data from this trial showed that TRV130, when given on-demand, matched morphine efficacy for pain relief with a markedly improved safety and tolerability profile.” The company believes that the medication can offer enhanced pain relief, while reducing opioid-related adverse events.
Trevena Inc (NASDAQ:TRVN) is planning to initiate the phase 3 development of TRV130 in early 2016. The clinical-stage company reported data for a phase 2a/b trial of TRV130 involving patients undergoing bunionectomy surgery in late 2014, indicating superior efficacy against morphine. The clinical-stage biopharmaceutical company announced its second quarter 2015 financial results on August 11, reporting a net loss per share of $0.28 against the market expectations of a loss per share of $0.37. Trevena Inc (NASDAQ:TRVN) didn’t release revenue figures for the quarter.
The shares of Trevena Inc (NASDAQ:TRVN) have appreciated by 65.49% year-to-date. Despite the appreciation in its share price, the hedge funds in our database were bearish on the company, cutting their aggregate holdings by 47.30% to $26.32 million during the second quarter. Nonetheless, the number of hedge funds with long positions in Trevena Inc (NASDAQ:TRVN) inched up to 12, an improvement of two from the previous quarter. The hedge funds in our database held 10.70% of the outstanding shares of the biopharmaceutical company.
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At the end of the second quarter, Broadfin Capital, led by Kevin Kotler, was the largest shareholder of Trevena Inc (NASDAQ:TRVN) in our database, holding 1.41 million shares with a market value of $8.82 million. Phill Gross and Robert Atchinson’s Adage Capital Management came in at number two, owning 1.40 million shares of the medical company. Israel Englander’s Millennium Management boosted its stake in the firm by 225% during the second quarter to 206,064 shares valued at $1.29 million. AQR Capital Management, led by Cliff Asness, initiated a large equity position in the company during the quarter, of 27,642 shares worth $173,000. Citadel Investment Group and Highbridge Capital Management were other hedge funds initiating long positions in Trevena Inc (NASDAQ:TRVN) during the period. On the other hand, Camber Capital Management and Bluecrest Capital Management were among the hedge funds disposing off their stakes in the company.
Despite the negative hedge fund outlook, positive study results can be game changers concerning the prospects of biopharmaceutical companies, thus we recommend a long position in Trevena Inc (NASDAQ:TRVN).
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