89bio (ETNB) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: N/A
• Average Volume (3M): 1.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: N/A
• EPS Growth: -70.45%
• Country: US
• Employees: 93
• Sector: Healthcare
• Sector Strength: 71
• Industry: Biotechnology
• EPS (TTM): -3.43
• Shares Outstanding: 145,984,180
• 10 Day Avg. Volume: 2,595,051
• 30 Day Avg. Volume: 1,869,610
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -2.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.78
• Price Target Upside: 194.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

89bio's stock reflects the high-risk, high-reward nature typical of early-stage biotech companies. The financial performance score is hampered by the lack of revenue and ongoing operational losses, despite a strong cash position. Technical analysis indicates bearish momentum, with potential volatility. The valuation score is low due to negative earnings and no dividend yield, common for firms in the R&D phase. Investors should be mindful of the company's future reliance on successful R&D outcomes or additional financing.

Positive Factors

Clinical Trials

The Phase 3 ENTRUST study for pegozafermin in severe hypertriglyceridemia has completed enrollment and is seen as a high-probability success.

Financial Position

No near-term financial overhang is anticipated for 89bio, with a strong preliminary cash balance projected for year-end 2024.

Regulatory Approval

Plans for accelerated and conditional approval in the U.S. and Europe for pegozafermin based on positive data from the ENLIGHTEN trials indicate potential future success.

Negative Factors

Approval Delays

A second pivotal trial in SHTG will be required for approval, potentially delaying the BLA filing process.

Market Competition

Pivotal data from competitors in the sHTG treatment landscape could reset the clinical and commercial bar for physician adoption.

Regulatory Challenges

Potential implications on pegozafermin’s regulatory pathway, physician prescribing, and access/reimbursement due to strong launch of a competitor's product.

89bio Business Overview & Revenue Model

Company Description

89bio, Inc. (ETNB) is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of liver and cardio-metabolic diseases. The company's core product candidate, pegozafermin, is designed to treat nonalcoholic steatohepatitis (NASH) and severe hypertriglyceridemia (SHTG). Operating primarily within the biotechnology sector, 89bio aims to address the significant unmet medical needs associated with these conditions by advancing its novel therapeutic solutions through clinical trials.

How the Company Makes Money

89bio makes money primarily through the development and eventual commercialization of its lead product candidate, pegozafermin. The company's revenue model is focused on progressing its candidate through various stages of clinical trials with the goal of achieving regulatory approval for commercial sale. Key revenue streams are expected to arise from licensing agreements, partnerships with larger pharmaceutical companies, and eventual product sales. 89bio may also secure funding through strategic collaborations and potential milestone payments associated with the development and commercialization of its therapeutic solutions. As a clinical-stage company, 89bio currently does not generate revenue from product sales but is actively engaged in research and development activities to bring its therapies to market.

89bio Financial Statement Overview

Summary

89bio is in a typical biotechnology industry situation where the focus is on research and development with no revenue generation yet. The company's financial health heavily relies on its strong cash reserves and ability to secure financing. The absence of revenue and consistent operational losses highlight the high-risk, high-reward nature of investing in such early-stage biotech firms. Future financial health depends on successful R&D outcomes and eventual product commercialization or continued investor support.

Income Statement

89bio has not generated any revenue over the years, indicating no sales activity, which is common in early-stage biotechnology firms focused on research and development. The company consistently reported negative EBIT and net income, reflecting ongoing operational losses. The lack of revenue and persistent losses highlight the company's reliance on external funding and the high-risk nature of its current stage.

Balance Sheet

The company's balance sheet shows a strong cash position with significant cash and short-term investments relative to its total liabilities, leading to a negative net debt. The debt-to-equity ratio is low, indicating limited leverage and risk from debt. However, continuous losses have eroded equity, which could be a concern if cash burn continues without revenue generation.

Cash Flow

89bio's operating cash flow is consistently negative, emphasizing the cash outflows related to its operations, typical for biotech firms in the R&D phase. The company has been able to sustain operations through substantial financing activities, shown by positive cash flows from financing. However, the lack of free cash flow generation and increasing cash burn rate pose a future financing risk if no revenue or additional funding is secured.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-273.00K	-240.00K	-79.00K	-60.00K
	EBIT
-384.66M	-151.20M	102.25M	-89.74M	-49.35M
	EBITDA
-384.66M	-134.46M	-99.84M	-90.19M	-49.50M
	Net Income Common Stockholders
-367.08M	-142.19M	-102.03M	-90.12M	-49.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
439.95M	578.87M	188.16M	150.75M	204.65M
	Total Assets
478.69M	596.27M	196.82M	162.42M	211.07M
	Total Debt
1.82M	27.11M	20.05M	19.40M	0.00
	Net Debt
-124.24M	-289.05M	-35.21M	-131.35M	-204.65M
	Total Liabilities
77.90M	59.96M	44.99M	36.47M	8.11M
	Stockholders Equity
400.79M	536.31M	151.83M	125.96M	202.96M
Cash Flow		Free Cash Flow
-367.84M	-129.19M	-81.10M	-76.84M	-46.37M
	Operating Cash Flow
-367.82M	-129.19M	-81.09M	-76.78M	-46.24M
	Investing Cash Flow
-40.86M	-123.02M	-33.94M	7.16M	-106.83M
	Financing Cash Flow
218.59M	513.11M	117.83M	23.87M	157.92M

89bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETNB, the sentiment is Negative. The current price of 8.08 is below the 20-day moving average (MA) of 8.37, below the 50-day MA of 9.07, and below the 200-day MA of 8.46, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 42.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETNB.

89bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKRO	60 Neutral	$3.40B	―	-39.22%	―	―	-31.37%
MDGL	54 Neutral	$7.24B	―	-80.35%	―	―	-10.89%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
ETNB	48 Neutral	$1.18B	―	-78.34%	―	―	-70.45%
VKTX	42 Neutral	$2.88B	―	-17.90%	―	―	-10.27%
VTVT	41 Neutral	$55.34M	―	-121.97%	―	―	65.54%
GALT	36 Underperform	$94.71M	―	48.74%	―	―	4.53%

89bio Corporate Events

89bio Strengthens Leadership Retention with New RSUs

On December 12, 2024, 89bio, Inc. granted restricted stock units to key employees, including the Chief Medical Officer, Chief Technical Operations Officer, and Chief Financial Officer, as part of a retention strategy. This move is aimed at ensuring their continued service with the company, with the RSUs vesting semiannually over two years, potentially strengthening the company’s operational stability and retaining top talent.