vnTrevena Inc (NASDAQ: TRVN) is having an overwhelmingly rough start to the trading session in the pre-market hours this morning, and for good reason. The FDA released briefing documents for an upcoming advisory board meeting, leading to concerns about the company’s candidate. Of course, concerned investors generally equate to declines, and that’s exactly what we’re seeing today. Nonetheless, the drop could prove to be a great buying opportunity. Today, we’ll talk about:
- The FDA news;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to TRVN ahead.
TRVN Falls Hard On FDA Briefing Docs
As mentioned above, Trevena is having an incredibly rough start to the trading session in the pre-market hours this morning as FDA news hits the tape. Recently, the FDA released briefing documents for the upcoming advisory board meeting to discuss the potental approval of Oliceridine. The treatment is an opiod-based pain medication that showed stellar results in multiple phases of clinical trials.
However, TRVN is falling because the briefing documents suggest that the FDA may have some safety concerns. So, investors are feeling the fear, sending the stock tumbling. Nonetheless, I believe that this big decline may prove to be an opportunity.
At the end of the day, this isn’t the first time that the FDA has expressed safety concerns before an advisory board meeting. In many cases, these concerns are hashed out. In the case of TRVN, the concerns are natural. We’re talking about an opiod-based medication in a time when opiods are a hotly debated topic. Nonetheless, the data suggests that not only is the treatment effective, it is safe and well-tolerated. Therefore, those who get in now may be up for big gains if and when the advisory panel votes in favor of the treatment.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Trevena, the news is somewhat concerning. After all, there has been tons of resources dumped into Oliceridine and a rejection would be damning. While I don’t see a rejection on the horizons, concerns expressed by the FDA are leading to concerns among investors who are sending the stock spiraling down. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (8:44), TRVN is trading at $1.53 per share after a loss of $1.45 per share or 48.66% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TRVN. In particular, we’re interested in following the story surrounding the company’s continued work to bring Oliceridine to market and the coming FDA advisory committee meeting results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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