89bio (ETNB) AI Stock Analysis

• Market Cap: $956.20M
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: N/A
• EPS Growth: -70.45%
• Country: US
• Employees: 93
• Sector: Healthcare
• Sector Strength: 64
• Industry: Biotechnology
• EPS (TTM): -3.43
• Shares Outstanding: 145,984,180
• 10 Day Avg. Volume: 2,042,448
• 30 Day Avg. Volume: 2,213,859
• 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: 263.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

89bio's stock score reflects the typical high-risk, high-reward profile of early-stage biotech firms. The lack of revenue and operational losses weigh heavily on the financial performance score. Bearish technical indicators add to the cautious outlook. While the valuation is low, the positive clinical progress update provides some strategic reassurance, underscoring potential future growth contingent on successful product commercialization.

Positive Factors

Clinical Trials

Phase 3 NASH timelines remain on track, with significant future revenue opportunities projected for fibrotic and cirrhotic NASH.

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.

Study Results

Positive results from the earlier Phase 2 ENTRIGUE study showed impressive reductions in triglycerides, boosting confidence in pegozafermin's effectiveness for SHTG.

Negative Factors

Clinical Trial Delays

The decision to delay the data readout for the ENTRUST study was made following discussions with the FDA to reduce potential bias, not due to any unexpected safety or efficacy findings.

Competition

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

Regulatory Challenges

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

89bio Business Overview & Revenue Model

Company Description

89bio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. Its lead product candidate is pegozafermin, a glycoPEGylated analog of fibroblast growth factor 21 for the treatment of nonalcoholic steatohepatitis. The company also intends to develop pegozafermin for the treatment of severe hypertriglyceridemia. 89bio, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.

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: Neutral
• Last Price: 6.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETNB, the sentiment is Neutral. The current price of 6.55 is above the 20-day moving average (MA) of 6.50, below the 50-day MA of 8.20, and below the 200-day MA of 8.28, indicating a neutral trend. The MACD of -0.60 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 93.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ETNB.

89bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLYS	53 Neutral	$857.01M	―	-82.24%	―	―	-106.10%
VIR	51 Neutral	$795.43M	―	-38.09%	―	-13.90%	16.56%
Sector *	51 Neutral	$5.20B	3.18	-40.80%	2.96%	17.66%	1.94%
RCUS	46 Neutral	$856.26M	―	-59.77%	―	120.51%	25.37%
SYRE	43 Neutral	$841.19M	2.31	-42.90%	―	-100.00%	94.68%
ETNB	42 Neutral	$956.20M	―	-78.34%	―	―	-70.45%
ELVN	36 Underperform	$880.61M	―	-32.04%	―	―	12.85%

89bio Corporate Events

89bio Updates on Pegozafermin Clinical Progress

On April 9, 2025, 89bio released an updated corporate presentation detailing the progress of their product candidate, pegozafermin, which is currently in late-stage clinical trials for MASH and SHTG. The company highlights pegozafermin’s potential as a best-in-class therapy with a favorable safety profile and robust market opportunities. The presentation outlines the anticipated timelines for clinical trial results and commercialization, emphasizing a strong financial position with significant cash reserves to support ongoing development and operations.

Spark’s Take on ETNB Stock

According to Spark, TipRanks’ AI Analyst, ETNB is a Neutral.

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.

To see Spark’s full report on ETNB stock, click here.