This Analyst Thinks 89Bio's Pegozafermin Data Has Exceeded Expectations

  • In June, 89bio Inc ETNB announced topline results from the ENTRIGUE Phase 2 proof-of-concept study of pegozafermin for severe hypertriglyceridemia (SHTG). 
  • SVB Leerink views these results as 'strong' and says they provide a clear win for the company as all doses of pegoza demonstrated statistically significant and clinically meaningful reductions in triglycerides, exceeding KOL expectations ahead of the results.
  • The analysts say that pegoza's safety/tolerability profile continues to look favorable vs. Akero Therapeutics Inc's AKRO efruxifermin, with lower rates of GI toxicity (diarrhea, nausea, vomiting) and no apparent CNS/tremor signal. 
  • SVB has updated its model to reflect a higher probability of success (70% from 35%) and higher peak sales (~$700 million from ~$660 million) in SHTG based on the Phase 2 results and the latest equity offering. 
  • The analyst has lowered the price target to $29 from $50 and reiterates the Out-Perform rating.
  • "Overall, we continue to view pegozafermin as a potentially best-in-class FGF21 analog, based on its competitive efficacy profile — now shown across multiple indications — and emerging differentiation on safety/ tolerability," SVB wrote.
  • Price Action: ETNB shares are down 4.48% at $3.41 during the market session on the last check Monday.
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