SAN FRANCISCO - 89bio, Inc. (NASDAQ:ETNB), a biopharmaceutical company specializing in liver and cardiometabolic disease therapies, has initiated a public offering of $100 million in common stock shares or, alternatively, pre-funded warrants for certain investors. The offering also includes a 30-day option for underwriters to purchase up to an additional $15 million in common stock at the public offering price, minus underwriting discounts and commissions.
This offering is contingent on market conditions, and there is no certainty regarding the completion or terms of the offering. The company has stated that the proceeds will be directed towards clinical trials for their lead candidate, pegozafermin, manufacturing costs, and general corporate purposes.
Goldman Sachs (NYSE:GS) & Co. LLC, Leerink Partners, and Evercore ISI are managing the book-running for the offering. The securities are available through a prospectus supplement and accompanying prospectus as part of an effective registration statement filed with the SEC on May 23, 2023. Potential investors are encouraged to review these documents for a more comprehensive understanding of 89bio and the offering.
89bio is currently conducting Phase 3 clinical trials for pegozafermin, aimed at treating metabolic dysfunction-associated steatohepatitis and severe hypertriglyceridemia. The company emphasizes that the forward-looking statements in their announcement are based on current expectations and subject to risks and uncertainties.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, and any sales will be unlawful in jurisdictions where the offer, solicitation, or sale is not permitted prior to registration or qualification under the securities laws of such state or jurisdiction.
The information presented is based on a press release statement from 89bio, Inc.
In other recent news, Nanobiotix (EPA:NANOB), a biotechnology firm, announced the addition of Dr. Margaret A. Liu and Ms. Anat Naschitz as observers to its Supervisory Board. Dr. Liu's expertise in vaccines, gene therapy, and cancer immunotherapy, coupled with Ms. Naschitz's experience as a life science investor and entrepreneur, are expected to contribute significantly to the company's strategic vision and growth. Their nominations will be submitted for ratification at the next shareholders' meeting for Nanobiotix.
Turning to 89bio, a clinical-stage biopharmaceutical company, it has appointed Francis Sarena as Chief Operating Officer and Dr. Charles McWherter to its Board of Directors. Their extensive backgrounds in the industry are anticipated to be valuable as the company advances its Phase 3 trials.
Analysts at UBS maintained a Buy rating on 89bio, while Evercore ISI reduced the price target due to projected expenses. RBC Capital Markets and H.C. Wainwright also adjusted their price targets, maintaining their respective ratings. These are recent developments as 89bio continues to progress with its lead candidate, pegozafermin, currently in advanced clinical trials. The results of these studies are anticipated in 2025.
InvestingPro Insights
As 89bio, Inc. (NASDAQ:ETNB) moves forward with its public offering, investors may find additional context from InvestingPro's data and tips particularly relevant. The company's market capitalization stands at $958.32 million, reflecting its current position in the biopharmaceutical sector.
InvestingPro Tips highlight that 89bio holds more cash than debt on its balance sheet, which could be seen as a positive factor as the company seeks to raise additional funds through this offering. This strong cash position may provide some reassurance to potential investors about the company's financial stability.
However, it's important to note that 89bio is quickly burning through cash, according to another InvestingPro Tip. This rapid cash burn rate underscores the company's need for the current $100 million public offering to fund its ongoing clinical trials and operations.
The company's financial performance metrics from InvestingPro reveal an adjusted operating income of -$303.86 million for the last twelve months as of Q3 2023. This negative figure aligns with the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year. These insights provide context for 89bio's decision to raise additional capital through the public offering.
Despite the current financial challenges, 89bio has shown strong market performance recently. InvestingPro Data shows a 29.01% price total return over the past month and a 34.72% return over the past year. This positive momentum could potentially support investor interest in the new offering.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for 89bio, providing a deeper understanding of the company's financial health and market position.
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