New Haven-based Trevi Therapeutics announced Friday that it had raised $55 million in a private-placement deal to help develop Haduvio, its promising drug for chronic cough.
Frazier Life Sciences and Venrock Healthcare Capital Partners are co-lead investors, with Fairmount and New Enterprise Associates also participating.
The deal is expected to close April 11 and involves 4,580,526 shares of common stock at a purchase price of $1.90 per share, in addition to pre-funded warrants to purchase up to an aggregate of 24,379,673 shares of common stock at a purchase price of $1.899 per warrant, for gross proceeds of approximately $55 million.
Private placement deals are pursued by early stage companies as an alternative to IPOs to raise capital for expansion.
Trevi reported positive results earlier this year in its Phase 2 trial of Haduvio in patients with idiopathic pulmonary fibrosis who are suffering from chronic cough.Â
Interim results of the trial showed a 77.3% reduction in daytime cough frequency from baseline with the use of Haduvio compared to a 25.7% reduction with a placebo. Trevi suspended enrollment in the trial in March due to the positive outcomes.
Haduvio is an oral, extended-release formulation of nalbuphine, a drug that has been on the market as an injectable pain treatment for more than 20 years in the United States and Europe. The new funding will help develop the drug as a treatment for idiopathic pulmonary fibrosis patients.
Contact Liese Klein at lklein@newhavenbiz.com.
