89bio shares maintain Buy rating as analyst cites confidence in pegozafermin trial outcomes

On Tuesday, H.C. Wainwright reiterated its Buy rating and $29.00 price target for 89bio Inc . (NASDAQ:ETNB) shares. According to InvestingPro data, the stock currently trades at $6.31, near its 52-week low of $5.99, with analyst targets ranging from $12 to $49. The strong analyst consensus suggests significant upside potential, though investors should note the stock's recent weakness, down over 42% in the past year.

The firm's confidence in the biopharmaceutical company's prospects is tied to the progress of its Phase 3 ENTRUST study of pegozafermin, a treatment for severe hypertriglyceridemia (SHTG). The study has successfully completed patient enrollment, and top-line data is expected in the second half of 2025.

The ENTRUST trial, a global Phase 3 trial, is designed to assess the efficacy of pegozafermin in up to 360 patients with SHTG. Participants in the study are randomized to receive either 30 mg, 20 mg of pegozafermin, or a placebo once weekly for 52 weeks. The primary goal of the trial is to measure the percent change from baseline in fasting triglycerides at Week 26 compared to placebo.

The optimism from H.C. Wainwright stems from the positive results of the 8-week Phase 2 ENTRIGUE study, which demonstrated significant reductions in triglycerides across various dosing groups. These results, combined with the ongoing enrollment in the Phase 3 ENLIGHTEN NASH program, position 89bio's top-line readout in the latter half of 2025 as the next significant event to watch.

In addition to the primary endpoint, analysts are keen to observe the impact of pegozafermin on liver fat, lipids, and HbA1c levels at Week 26, which are key secondary endpoints in the ENTRUST trial. Financial stability is also noted, with 89bio expected to have a preliminary year-end 2024 cash balance of approximately $440 million, indicating no immediate financial concerns for the company.

InvestingPro analysis reveals the company holds more cash than debt and maintains a strong current ratio of 11.66, though it's worth noting the company is quickly burning through cash. For deeper insights into 89bio's financial health and access to 11 additional ProTips, including detailed cash flow metrics and profitability forecasts, consider exploring InvestingPro's comprehensive research platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.