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On Friday, Goldman Sachs initiated coverage on 89bio Inc . (NASDAQ:ETNB) with a Neutral rating and set a price target of $11.00. The biopharmaceutical company, which currently trades at a market capitalization of $1.19 billion, is in late-stage clinical development, concentrating its efforts on treating liver and cardiometabolic diseases. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 13.19, though it’s currently not profitable. Its leading candidate, pegozafermin, is under evaluation in three Phase 3 trials for patients with F2-F4 NASH, which is the primary indication, and severe hypertriglyceridemia (sHTG).
Goldman Sachs acknowledged the potential of 89bio’s pegozafermin based on encouraging Phase 2 data and a strong mechanistic rationale. The firm has adopted a cautious stance pending further data, which aligns with InvestingPro’s analysis showing the company is quickly burning through cash with negative free cash flow of $368 million in the last twelve months. The upcoming Phase 3 ENLIGHTEN-Fibrosis data in F2/F3 NASH is considered a significant catalyst for the company’s stock in the first half of 2027. Analysts at Goldman Sachs believe that more information is needed to fully understand pegozafermin’s clinical profile and its potential position in the increasingly competitive NASH market.
The market for NASH treatments is rapidly evolving, with the successful launch of Madrigal Pharmaceuticals (NASDAQ:MDGL)’ Rezdiffra. The full approval of Rezdiffra, expected following positive MAESTRO-NASH Outcomes data in 2027, could impact pegozafermin’s regulatory pathway, as well as physician prescribing habits and access to reimbursement. These factors contribute to the cautious outlook from Goldman Sachs.
Additionally, Goldman Sachs is closely observing developments in the treatment landscape for severe hypertriglyceridemia. Pivotal data expected from Ionis Pharmaceuticals (NASDAQ:IONS) and Arrowhead Pharmaceuticals (NASDAQ:ARWR) in the second half of 2025 and beyond, particularly regarding the reduction in acute pancreatitis with the latter’s treatment, could redefine the clinical and commercial benchmarks for physician adoption of such therapies. Notably, while analyst consensus remains bullish with a mean price target suggesting significant upside potential, investors should note that InvestingPro analysis reveals 8 additional key insights about 89bio’s financial health and market position, available exclusively to subscribers through the comprehensive Pro Research Report.
In other recent news, 89bio Inc. reported significant financial developments, including ending the previous year with $440 million in cash and cash equivalents, alongside raising an additional $288 million earlier this quarter. The company has provided updated timelines for its Phase 3 trials of pegozafermin, with topline data anticipated in the first half of 2027 and 2028. In terms of analyst ratings, Cantor Fitzgerald reaffirmed its Overweight rating with a $29 price target, citing the company’s strong financial position and potential market opportunities. H.C. Wainwright, however, adjusted its price target from $29 to $21, maintaining a Buy rating, following changes in the timeline for the ENTRUST study’s data release. Meanwhile, Leerink Partners raised their price target to $37, driven by positive data from a Phase 2b study in NASH patients, which they believe supports the ongoing development of pegozafermin. Additionally, the company’s CEO, Rohan Palekar, received 200,000 restricted stock units as part of a retention strategy. These developments highlight ongoing advancements and strategic moves by 89bio in the biopharmaceutical sector.
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