RBC downgrades 89Bio to sector perform, cites fewer near term catalysts

Bet_Noire RBC Capital has downgraded 89Bio ( NASDAQ: ETNB ) to sector perform, citing fewer near term catalysts. The investment bank said it sees 89Bio entering a “quieter” year of clinical study execution for its drug pegoza, with reduced near term catalyst opportunities. RBC also said it was “difficult to handicap the impact” of GLP 1 medications on pegoza’s opportunity in the treatment of non alcoholic steatohepatitis, on NASH.

It noted that upcoming data on GLP 1s, potentially from Boehringer and Eli Lilly, will likely show NASH resolution, which “should not dramatically diminish the future role of FGF21s like pegoza,” but “we acknowledge this may still modestly impact the size of the NASH opportunity.” “It remains possible that with the full one year dosing of these next gen agents we could see signals of histological fibrosis benefits from the GLP 1 drugs themselves,” RBC said.

RBC also said that it believes a “more realistic” timeline for the launch of pegoza for NASH is 2028, which is “slightly behind our original expectations.” RBC lowered its price target for the stock to $15 from $24. More on 89bio 89bio: Despite Peer Trial Setback, Potential Remains In NASH 89bio's Low Price Presents An Opportunity 89bio: Risk And Reward Balance In NASH Therapeutics RBC downgrades 89Bio to sector perform, cites fewer near term catalysts 89bio stock dips on upsized pricing of $150.0 million securities offering.