89bio (ETNB) AI Stock Analysis

• Market Cap: $1.42B
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: N/A
• EPS Growth: -68.13%
• Country: US
• Employees: 93
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.49
• Shares Outstanding: 145,984,180
• 10 Day Avg. Volume: 2,041,921
• 30 Day Avg. Volume: 2,328,744
• PEG Ratio: 0.13
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.46
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 799.75
• Enterprise Value/Gross Profit: 45.32K
• Enterprise Value/Ebitda: -0.34
• 1Y Price Target: $33.50
• Price Target Upside: 231.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 42 Neutral
• 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

Clinical Trials

Pegozafermin is being evaluated in three Phase 3 trials for patients with F2-F4 NASH and severe hypertriglyceridemia, indicating significant advancement in clinical development.

Regulatory Pathway

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.

Treatment Efficacy

Pegozafermin is regarded as a potentially best-in-class compound due to its competitive efficacy profile and differentiation on safety, tolerability, and dosing frequency.

Negative Factors

Commercial Landscape

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

Market Competition

The strong launch of MDGL's Rezdiffra could have implications on pegozafermin's regulatory pathway, physician prescribing, and access/reimbursement.

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. (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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.00K	0.00	0.00	0.00	0.00	0.00
Gross Profit	9.00K	0.00	-273.00K	-240.00K	-79.00K	-60.00K
EBITDA	-386.26M	-384.66M	-134.46M	-99.84M	-90.19M	-49.50M
Net Income	-386.67M	-367.08M	-142.19M	-102.03M	-90.12M	-49.50M
Balance Sheet
Total Assets	685.03M	478.69M	596.27M	196.82M	162.42M	211.07M
Cash, Cash Equivalents and Short-Term Investments	638.78M	439.95M	578.87M	188.16M	150.75M	204.65M
Total Debt	1.64M	37.55M	27.11M	20.05M	19.40M	0.00
Total Liabilities	79.57M	77.90M	59.96M	44.99M	36.47M	8.11M
Stockholders Equity	605.46M	400.79M	536.31M	151.83M	125.96M	202.96M
Cash Flow
Free Cash Flow	-399.93M	-367.84M	-129.19M	-81.10M	-76.84M	-46.37M
Operating Cash Flow	-399.84M	-367.82M	-129.19M	-81.09M	-76.78M	-46.24M
Investing Cash Flow	31.20M	-40.86M	-123.02M	-33.94M	7.16M	-106.83M
Financing Cash Flow	466.46M	218.59M	513.11M	117.83M	23.87M	157.92M

89bio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.1 is above the 20-day moving average (MA) of 10.01, above the 50-day MA of 9.00, and above the 200-day MA of 8.40, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 48.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETNB.

89bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLYS	53 Neutral	$932.01M	―	-56.31%	―	―	-106.10%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
VIR	50 Neutral	$750.63M	―	-44.59%	―	-73.79%	-5.24%
RCUS	48 Neutral	$885.20M	―	-63.17%	―	-40.51%	-35.07%
SYRE	43 Neutral	$934.88M	2.31	-50.47%	―	-100.00%	94.68%
ETNB	42 Neutral	$1.42B	―	-69.30%	―	―	-68.13%
ELVN	36 Underperform	$1.22B	―	-31.30%	―	―	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.