Buy Rating Affirmed for 89bio’s Pegozafermin: A Promising NASH Treatment with Strong Regulatory Endorsements

Leerink Partners analyst Thomas Smith has maintained their bullish stance on ETNB stock, giving a Buy rating on March 27.

Thomas Smith has given his Buy rating due to a combination of factors surrounding 89bio’s lead asset, pegozafermin. The drug’s recent Priority Medicines (PRIME) designation by the European Medicines Agency for its application in treating nonalcoholic steatohepatitis (NASH) reflects its strong potential. The PRIME designation, which follows a previous Breakthrough Therapy Designation by the FDA, underscores the drug’s promising clinical data and signifies a smoother regulatory path ahead in both the U.S. and EU markets. This regulatory acknowledgment further highlights the unmet need in the NASH treatment landscape that pegozafermin aims to address.

Moreover, Smith is optimistic about the drug’s prospects within the FGF21 class, which is considered highly promising for NASH and metabolic diseases. Pegozafermin stands out due to its compelling efficacy profile, safety, tolerability, and less frequent dosing requirements. The ongoing Phase 3 ENLIGHTEN program’s trials further support the drug’s potential as a standout treatment. Smith’s confidence is bolstered by the belief that 89bio is well-positioned to capitalize on pegozafermin’s market potential, which could lead to significant value creation for shareholders.

In another report released on March 27, H.C. Wainwright also maintained a Buy rating on the stock with a $31.00 price target.

ETNB’s price has also changed moderately for the past six months – from $15.090 to $11.310, which is a -25.05% drop .

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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.