SVC Leerink initiated coverage of 89bio (NASDAQ:ETNB) with an “outperform” rating and $55 price target. The stock closed at $28.60 on Dec. 6.
89bio is developing a fibroblast growth factor (FGF) 21 analog, BIO89-100, in nonalcoholic steatohepatitis (NASH) and severe hypertriglyceridemia (SHTG), which is associated with a number of severe diseases such as acute pancreatitis and coronary artery disease.
“We expect BIO89-100 will stand out based on its thoughtful engineering design that has led to an optimal structure-activity relationship, a favorable tolerability profile to date, and potentially dramatically less frequent dosing intervals,” writes analyst Dr. Pasha Sarraf.
Current treatments in SHTG have inadequate efficacy and limiting side effects, which gives BIO89-100 a “strong chance to hit a breakthrough commercial profile, if approved,” he added.
Dr. Sarraf said topline data from the company’s Phase 1b/2a study of BIO89-100 in NASH expected in the second half of 2020, with topline results from its Phase 2 study of BIO89-100 in SHTG in early 2021.
