89bio seeks $250 million in public stock offering

SAN FRANCISCO - 89bio, Inc. (NASDAQ:ETNB), a biopharmaceutical company specializing in liver and cardiometabolic diseases with a current market capitalization of $1.05 billion, has initiated a public offering of $250 million in common stock or pre-funded warrants. According to InvestingPro data, the company's stock has shown strong momentum with a 13% return over the past week. The company may also allow underwriters a 30-day option to buy an additional $37.5 million in stock at the offering price, minus underwriting discounts and commissions.

The offering's success is contingent on market conditions, and there are no guarantees regarding its completion or the final terms. The securities in this offering are exclusively from 89bio. The firm plans to allocate the net proceeds to further clinical trials of its leading drug candidate, pegozafermin, as well as manufacturing and general corporate needs. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, with a healthy current ratio of 11.66, though it's currently burning through cash rapidly.

Goldman Sachs & Co. LLC, Leerink Partners, BofA Securities, and Cantor are managing the offering. An effective shelf registration statement for these securities was filed with the SEC on May 23, 2023, and the offering is made through a prospectus and a supplement from this registration.

Pegozafermin, 89bio's primary focus, is in Phase 3 development for treating metabolic dysfunction-associated steatohepatitis and severe hypertriglyceridemia. This drug is a fibroblast growth factor 21 analog, designed with glycoPEGylated technology for a prolonged half-life.

The company's forward-looking statements indicate plans for the offering and its anticipated use of proceeds but caution that these are subject to change due to various risks and uncertainties.

This article is based on a press release statement from 89bio, Inc. For deeper insights into 89bio's financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, check out the full company analysis on InvestingPro, which includes a detailed Pro Research Report available for over 1,400 US stocks.

In other recent news, 89bio Inc . has seen significant developments, particularly revolving around its lead candidate, pegozafermin. The company has initiated a public offering of $100 million, with proceeds directed towards clinical trials for pegozafermin, manufacturing costs, and general corporate purposes. In addition, 89bio has issued restricted stock units to key executives as part of a retention strategy.

The company's confidence in pegozafermin is tied to the progress of its Phase 3 ENTRUST study for the treatment of severe hypertriglyceridemia. The study has successfully completed patient enrollment, with data expected in the second half of 2025. Furthermore, findings from the Phase 2b ENLIVEN trial suggest that pegozafermin may be effective in reversing fibrosis and preventing progression to cirrhosis in patients with advanced metabolic dysfunction-associated steatohepatitis.

In terms of analyst notes, H.C. Wainwright has reiterated its Buy rating for 89bio, citing confidence in pegozafermin trial outcomes. UBS has also maintained a Buy rating, while Evercore ISI and others have adjusted their price targets. Lastly, 89bio has appointed Francis Sarena as Chief Operating Officer and Dr. Charles McWherter to its Board of Directors, marking recent changes in the company's leadership.

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