Fed Governor Cook sues Trump over firing attempt
On Monday, Leerink Partners analyst Thomas Smith adjusted the price target for 89bio Inc . (NASDAQ:ETNB) to $37 from $34, while reiterating an Outperform rating on the stock. Currently trading at $9.60, the stock sits well below the broader analyst target range of $12 to $49. According to InvestingPro data, ETNB has shown strong momentum with a 22.76% return year-to-date, though technical indicators suggest the stock may be in overbought territory. This decision follows the release of encouraging 96-week data from a Phase 2b SYMMETRY study of efruxifermin (EFX) in NASH patients with compensated cirrhosis. The results demonstrated a statistically significant fibrosis benefit, which Smith regards as transformational for the field and supportive of ETNB’s FGF21 analog, pegozafermin, in NASH.
The analyst highlighted the favorable evolution of fibrosis benefits over the course of the study, noting statistically significant rates of new and sustained responders in the 50mg cohort compared to placebo. Despite a slight erosion in rates of NASH resolution from 36 weeks, the data remained statistically significant and clinically meaningful. The analyst believes that the strong NASH resolution data and supportive biomarker data underscore the multifaceted benefits of the FGF21 mechanism, which addresses both metabolic dysregulation and fibrosis.
Smith also touched on the safety profile of EFX, stating that adverse events were primarily gastrointestinal and mild to moderate in severity. He acknowledged minor but statistically significant reductions in bone-mineral density but suggested that this effect seems manageable and is consistent with other treatments in development for NASH and obesity. InvestingPro analysis reveals that 89bio maintains a strong financial position with more cash than debt and a healthy current ratio of 11.66, providing adequate resources for continued clinical development. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
The positive study results are seen as a major milestone for the NASH clinical landscape and offer significant validation for the FGF21 class. Smith asserts that these findings further de-risk the ongoing development of pegozafermin in F4 NASH, which is currently being studied in the ENLIGHTEN-Cirrhosis trial. The analyst also believes that pegozafermin has potential advantages over EFX in terms of tolerability, safety, and dosing regimen.
Leerink Partners has increased the probability of success for pegozafermin in F4 NASH to 60% from the previous 40% in their model, leading to the raised price target. The firm maintains its Outperform rating, reflecting a positive outlook on the stock’s future performance. While the company currently shows an overall FAIR financial health score according to InvestingPro, investors should note that net income is expected to decrease this year, with analysts not anticipating profitability in the near term.
In other recent news, 89bio, Inc. has entered into an underwriting agreement with Goldman Sachs & Co. LLC, Leerink Partners LLC, and BofA Securities, Inc., planning to raise approximately $234.6 million through the issuance of common stock and pre-funded warrants. The underwriters have also been granted a 30-day option to purchase additional shares. The proceeds are expected to support ongoing clinical trials of its lead candidate, pegozafermin, and cover manufacturing costs and other general corporate expenses.
In addition, 89bio, Inc. has issued restricted stock units to its Chief Medical (TASE:PMCN) Officer Hank Mansbach, Chief Technical Operations Officer Quoc Le-Nguyen, and Chief Financial Officer Ryan Martins as part of a retention strategy. These developments come alongside the progress of the Phase 3 ENTRUST study of pegozafermin, a treatment for severe hypertriglyceridemia.
H.C. Wainwright has reiterated its Buy rating for 89bio, expressing confidence in the ongoing study. These are some of the recent developments at 89bio, Inc., highlighting the company’s strategic moves to support its clinical trials and retain key personnel.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.