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89bio (ETNB)
NASDAQ:ETNB
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89bio (ETNB) AI Stock Analysis

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ETNB

89bio

(NASDAQ:ETNB)

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Neutral 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
The overall score for 89bio is primarily weighed down by the financial performance due to ongoing losses and cash flow issues. Technical indicators show bearish momentum, adding to the risk. Although corporate events highlight promising clinical progress, the company's valuation remains low due to negative earnings, typical in the biotech industry. The stock reflects high-risk, high-reward potential.
Positive Factors
Strong Cash Reserves
A strong cash reserve provides financial flexibility, allowing 89bio to fund ongoing R&D activities and withstand periods of operational losses.
Clinical Progress of Pegozafermin
Advancing pegozafermin in late-stage trials positions 89bio to potentially capture significant market share in treating NASH and SHTG, addressing unmet needs.
External Financing Support
Access to external financing ensures 89bio can continue its R&D efforts and operational activities, essential for a clinical-stage biotech firm.
Negative Factors
Negative Cash Flow
Persistent negative cash flow indicates ongoing cash burn, which could threaten sustainability if external funding becomes scarce.
Operational Losses
Continued operational losses highlight challenges in achieving profitability, necessitating successful product commercialization or partnerships.
High Liabilities
High liabilities relative to assets can strain financial health, especially if cash reserves are depleted, impacting long-term viability.

89bio (ETNB) vs. SPDR S&P 500 ETF (SPY)

89bio Business Overview & Revenue Model

Company Description89bio, 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 Money89bio 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 exhibits strong cash reserves and external financing support but faces major operational challenges with continued net losses and negative cash flows. The company's financial health relies heavily on its cash management and ability to secure further funding.
Income Statement
20
Very Negative
The company has minimal revenue with high negative EBIT and Net Income, indicating significant operational losses. The TTM gross profit margin stands at 42.86%, but the negative profit margins and lack of revenue growth present a major concern for profitability.
Balance Sheet
50
Neutral
The balance sheet shows a strong cash position, with cash and equivalents significantly outweighing total debt, resulting in a negative net debt. However, the high liabilities compared to assets could be a potential risk if cash reserves diminish.
Cash Flow
35
Negative
The company has substantial negative free cash flow with an operating cash flow that is significantly negative compared to net income, indicating cash burn. However, strong financing cash flows show potential external funding support.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.00K0.000.000.000.000.00
Gross Profit-18.00K-38.00K-273.00K-240.00K-79.00K-60.00K
EBITDA-455.13M-384.66M-134.46M-99.84M-90.19M-49.50M
Net Income-450.21M-367.08M-142.19M-102.03M-90.12M-49.50M
Balance Sheet
Total Assets603.49M478.69M596.27M196.82M162.42M211.07M
Cash, Cash Equivalents and Short-Term Investments561.16M439.95M578.87M188.16M150.75M204.65M
Total Debt1.46M37.55M27.11M20.55M19.40M0.00
Total Liabilities81.75M77.90M59.96M44.99M36.47M8.11M
Stockholders Equity521.73M400.79M536.31M151.83M125.96M202.96M
Cash Flow
Free Cash Flow-439.19M-367.84M-129.19M-81.10M-76.84M-46.37M
Operating Cash Flow-439.10M-367.82M-129.19M-81.09M-76.78M-46.24M
Investing Cash Flow-103.27M-40.86M-123.02M-33.94M7.16M-106.83M
Financing Cash Flow459.23M218.59M513.11M117.83M23.87M157.92M

89bio Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.69
Price Trends
50DMA
10.22
Positive
100DMA
9.99
Positive
200DMA
9.03
Positive
Market Momentum
MACD
1.56
Negative
RSI
79.44
Negative
STOCH
36.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETNB, the sentiment is Positive. The current price of 14.69 is above the 20-day moving average (MA) of 11.58, above the 50-day MA of 10.22, and above the 200-day MA of 9.03, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 79.44 is Negative, neither overbought nor oversold. The STOCH value of 36.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETNB.

89bio Risk Analysis

89bio disclosed 57 risk factors in its most recent earnings report. 89bio reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

89bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$1.43B-4.25-58.35%6.07%-2.28%
53
Neutral
$3.09B-11.16-32.33%
49
Neutral
$791.82M-1.42-58.07%-75.91%-12.11%
43
Neutral
$994.20M-5.40-429.68%
42
Neutral
$2.18B-86.86%-82.75%
36
Underperform
$1.17B-9.91-3.53%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ETNB
89bio
14.69
7.53
105.17%
TVTX
Travere Therapeutics
24.79
11.14
81.61%
IMVT
Immunovant
16.34
-12.94
-44.19%
IRON
Disc Medicine
67.04
16.89
33.68%
HRMY
Harmony Biosciences Holdings
26.92
-7.85
-22.58%
DYN
Dyne Therapeutics
12.50
-21.05
-62.74%

89bio Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
89bio Updates on Pegozafermin Clinical Progress
Positive
Apr 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 04, 2025