89bio falls as RBC downgrades to 'sector perform', cuts PT
12/01/2024 12:57
** Shares of drug developer 89bio ETNB.O fall ~4% to
$10.73 premarket
** Brokerage RBC Capital downgrades stock to "sector
perform" from "outperform", cuts PT to $15 from $24
** Brokerage expects fewer trial results from co's
experimental fatty liver drug pegozafermin
** ETNB is set to start multiple late-stage studies testing
the drug this year to treat metabolic dysfunction-associated
steatohepatitis (MASH), also known as nonalcoholic
steatohepatitis (NASH)
** "Solid execution on these studies will be key, but we do
not expect any significant clinical updates from these prior
pegozafermin studies this year that would materially de-risk or
change the fundamental story," says RBC
** Brokerage says upcoming data readouts from GLP-1 drugs
from Eli Lilly's LLY.N tirzepatide and Boehringer Ingelheim's
survodutide, which are being tested to potentially also treat
fatty liver disease, "may still modestly impact the size of the
NASH opportunity"
** Stock fell 12.2% in 2023
(Reporting by Sneha S K)
((Sneha.SK@thomsonreuters.com;))