On Friday, New York City-based Armistice Capital disclosed it sold 2,152,000 shares of Travere Therapeutics (TVTX +2.73%) in the third quarter, reducing its position by an estimated $29.3 million.
What Happened
According to a filing with the Securities and Exchange Commission released Friday, Armistice Capital sold nearly 2.2 million shares of Travere Therapeutics during the third quarter. The post-transaction holding stood at 6.7 million shares valued at $160.7 million as of September 30.
What Else to Know
The fund’s sale reduced its Travere Therapeutics stake to 2% of 13F AUM, but the position remains its second-largest holding.
Top five holdings after the filing:
- NASDAQ:PTCT: $201.1 million (6.3% of AUM)
- NASDAQ:TVTX: $160.7 million (5% of AUM)
- NASDAQ:SUPN: $135.5 million (4.3% of AUM)
- NASDAQ:INCY: $99 million (3.1% of AUM)
- NASDAQ:NBIX: $97.8 million (3.1% of AUM)
As of Monday at market close, shares of Travere Therapeutics were priced at $35.44, up 100% over the past year and well outperforming the S&P 500, which is up nearly 14% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $3.2 billion |
| Revenue (TTM) | $435.8 million |
| Net Income (TTM) | ($88.5 million) |
| Price (as of market close Monday) | $35.44 |
Company Snapshot
- Travere Therapeutics markets therapies for rare diseases, including Chenodal, Cholbam, and Thiola, and is advancing clinical candidates such as Sparsentan and TVT-058.
- The company generates revenue through the sale of approved specialty pharmaceuticals and invests in R&D for pipeline expansion in rare disease indications.
- Primary customers include healthcare providers, specialty pharmacies, and patients affected by rare and ultra-rare diseases.
Travere Therapeutics, Inc. is a biopharmaceutical company focused on developing and commercializing therapies for rare diseases. With a portfolio of marketed products and a pipeline targeting high unmet medical needs, the company leverages clinical expertise and strategic partnerships to advance its growth. Its emphasis on rare and specialty conditions provides a differentiated position in the biotechnology sector.
Foolish Take
It's not unusual to see a hedge fund trim exposure after a stunning rally—even among high-conviction bets. Travere just posted one of its strongest quarters to date, with total revenue soaring to $164.9 million, driven by 155% year-over-year growth in FILSPARI’s U.S. sales. The company also swung to $25.7 million in GAAP net income from a $54.8 million loss a year earlier, underscoring how quickly commercial momentum is reshaping the financial profile.
Against that backdrop, it’s notable that Armistice—a highly event-driven healthcare investor—remains heavily concentrated in Travere even after selling $29.3 million worth of shares. The position still accounts for 5% of AUM and ranks as its second-largest holding, sitting alongside exposures to PTC Therapeutics and Supernus Pharmaceuticals. The trim looks more like disciplined portfolio management after a 100% share-price rebound than a shift in thesis, especially with Travere preparing for a potential FDA decision in FSGS early next year.
For long-term investors, the combination of accelerating commercial uptake, improving profitability, and upcoming regulatory catalysts keeps Travere squarely in focus.
Glossary
13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets Under Management (AUM): The total market value of assets a fund or investment manager oversees on behalf of clients.
Alpha: A measure of an investment's performance relative to a benchmark, indicating excess return above the benchmark.
Stake: The ownership interest or number of shares held in a particular company by an investor or fund.
Biopharmaceutical: A sector focused on developing drugs using biological sources and advanced biotechnology methods.
Clinical candidates: Experimental drugs or therapies currently being tested in human clinical trials.
Pipeline: The portfolio of drug candidates a biopharmaceutical company is developing, usually at various stages of research and approval.
Rare diseases: Medical conditions affecting a small percentage of the population, often requiring specialized treatments.
Specialty pharmaceuticals: Medications designed to treat complex, chronic, or rare conditions, often requiring special handling or administration.
Filing: An official document submitted to a regulatory agency, such as the SEC, often disclosing financial or operational information.
TTM: The 12-month period ending with the most recent quarterly report.
Position: The amount of a particular security or asset held by an investor or fund.
