Leerink Partners analyst Thomas Smith has maintained their bullish stance on ETNB stock, giving a Buy rating on May 14.
Thomas Smith has given his Buy rating due to a combination of factors that indicate strong potential for 89bio’s lead candidate, pegozafermin, in treating a significant liver disease. Smith highlights the initiation of the Phase 3 ENLIGHTEN-Cirrhosis trial for pegozafermin, which is the first FGF21 analog to reach this advanced stage of clinical testing for NASH patients with compensated cirrhosis. The innovative study design, with a focus on fibrosis regression as the primary endpoint and the potential for accelerated approval, underscores the promise of the drug. Furthermore, the alignment with regulatory agencies on the criteria for decompensation events could expedite the timeline to readout, making it a competitive candidate in the NASH space.
Moreover, Smith notes the broader implications of success in this trial, which could lead to full approval for treating all F2/F3/F4 NASH patients, significantly expanding the market opportunity. The compelling results from the ENLIVEN trial and the receipt of regulatory designations such as Breakthrough Therapy and PRIME further de-risk the investment, suggesting regulatory confidence in the quality of the data. With two ongoing Phase 3 trials, Smith views 89bio as well-executed and poised to demonstrate efficacy across various stages of NASH severity, marking the company’s stock as a worthwhile investment.
In another report released on May 14, Evercore ISI also maintained a Buy rating on the stock with a $33.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ETNB in relation to earlier this year.
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89bio (ETNB) Company Description:
89bio, Inc. operates as a clinical-stage biopharmaceutical company. It focuses on the development and commercialization of innovative therapies for nonalcoholic steatohepatitis (NASH), liver and cardio-metabolic diseases. The company was founded on January 01, 2018 and is headquartered in San Francisco, CA.
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