Trevena Stock Hits New High On FDA Boost: Should You Buy Now?
An approval from the United States Food and Drug Administration almost always comes as a major boost for any pharmaceutical or biotech company. That is what happened with the Trevena stock on Friday. Trevena Inc (NASDAQ:TRVN) has come up with its own opioid agonist that is supposed to take care of moderate to severe pains in adults.
In case of severe pains, that require an intravenous opioid, the company’s product, known as Olinvyk, can also be used. It goes without saying that it is a major development for Trevena and opens up a world of opportunities for the company. After the news broke, investors piled on to the stock and soon enough it had soared by as much as 75% in today’s trading.
In light of such gains, it is almost certain that the Trevena stock is going to be in focus among most investors and it is going to be interesting to see if it can further add to its gains. Hence, it could be worthwhile for investors to take a closer look at the latest developments and consider the implications.
The approval from the FDA has been granted for using the opioid in hospitals only. Trevena believes that there is a major need for a product like Olinvyk, which is a well-tolerated analgesic, in order to help in the management of moderate to severe main in patients.
While the rally in the stock on Friday was understandable, investors should also note that over the past three months, the Trevena stock has gone up as much as fourfold. The approval from the FDA helped the stock in hitting $3.48 a share, its highest level in 52 weeks.
That being said, investors should also keep in mind that Olinvyk is only supposed to be used when other treatments are not adequate enough. It is only supposed to be approved in case of short hospital visits and in other controlled clinical settings. The initial target market consists of only patients who are at high risk and in addition to that, the FDA has also set the daily dose at 27 mg.
While it is abundantly clear that the product is only meant for use in a hospital setting, the FDA made it a point to spell out that Olinvyk is not meant for use in homes. On the other hand, it is a well-known fact that opioid abuse has turned into a crisis in the United States in recent years and the FDA has directed Trevena to provide appropriate warnings in the packaging. The packaging is going to come with warnings against misuses, abuse, and addiction. It is still a major breakthrough for Trevena and it remains to be seen how the product performs in the coming months.
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