Form 4: Trevi Therapeutics Executive Acquires Shares Following Successful Trial Results

Christopher Galletta, Controller and Principal Accounting Officer of Trevi Therapeutics, acquired 4,560 shares of common stock following the successful results of the Phase 2 RIVER trial.

Summary

• Christopher Galletta, Controller and Principal Accounting Officer of Trevi Therapeutics, acquired shares due to the vesting of a performance-based stock option.
• The vesting was triggered by the Compensation Committee's certification that performance metrics related to the successful results of the Phase 2 RIVER trial of Haduvio in patients with refractory chronic cough were satisfied.
• Galletta acquired 4,560 shares of common stock on March 10, 2025, at a price of $2.38 per share.
• The performance-based stock option, granted on February 15, 2024, remains eligible for vesting with respect to additional shares if performance metrics related to the successful results of the CORAL trial are met.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the successful trial results triggering stock option vesting, indicating progress in the company's drug development pipeline. However, the future vesting is contingent on another trial, introducing some uncertainty.

Positives

• The successful results of the Phase 2 RIVER trial triggered the vesting of stock options, indicating positive progress for Trevi Therapeutics.
• The vesting of shares for a key officer aligns their interests with the company's success.
• The performance-based stock option structure incentivizes achievement of key clinical trial milestones.

Risks

• The vesting of additional shares is contingent on the successful results of the CORAL trial, which introduces uncertainty.
• Failure to achieve the performance metrics for the CORAL trial could impact future vesting of the stock option.

Future Outlook

The performance-based stock option remains eligible for vesting with respect to additional shares of common stock underlying the option in the event that performance metrics related to the successful results of the CORAL trial are satisfied.

Industry Context

This announcement reflects the importance of clinical trial success in the biopharmaceutical industry, where positive results can directly impact executive compensation and shareholder value. The vesting of stock options based on trial outcomes is a common practice to align management incentives with company performance.

Comparison to Industry Standards

• Performance-based compensation is a common practice in the pharmaceutical industry, with companies like Amgen, Gilead Sciences, and Biogen often tying executive bonuses and stock options to the achievement of clinical and regulatory milestones.
• The specific metrics used for vesting, such as the success of Phase 2 trials, are tailored to the company's development pipeline and strategic goals.
• The size of the stock option grant and the vesting schedule are generally benchmarked against peer companies to ensure competitive compensation packages.

Stakeholder Impact

• Positive impact on shareholders due to the successful trial results and potential for future drug development progress.
• Potential positive impact on employees through increased company value and potential for future stock option vesting.
• Potential positive impact on patients with chronic cough and idiopathic pulmonary fibrosis if Haduvio proves to be an effective treatment.

Next Steps

• Continued monitoring of the progress and results of the Phase 2b CORAL trial.
• Potential vesting of additional shares if the CORAL trial meets its performance metrics.

Key Dates