Liver Disease Player 89Bio Downgraded: Analyst Sees Short-Term Uncertainties In Fatty Liver Drug Development
Portfolio Pulse from Vandana Singh
RBC Capital Markets downgraded 89Bio Inc (ETNB) due to short-term uncertainties in its fatty liver drug development, specifically its drug pegozafermin for NASH treatment. While RBC is optimistic about the long-term prospects of FGF21 class drugs and pegozafermin's potential, they note fewer short to medium-term clinical updates and uncertainties around competitor Madrigal Pharmaceuticals Inc's (MDGL) resmetirom. RBC lowered ETNB's price target from $24 to $15 and downgraded the stock from Outperform to Sector Perform. The FDA's guidance suggests a longer timeline for NASH treatment development, with key approvals expected around 2027/2028. ETNB shares dropped 0.90% to $11.07.
January 12, 2024 | 7:41 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Madrigal Pharmaceuticals' resmetirom may impact perceptions of 89Bio's pegozafermin, with a PDUFA date approaching on March 14 that could affect the NASH sector interest.
While the article suggests that Madrigal's resmetirom could impact perceptions of 89Bio's drug, the immediate effect on Madrigal's stock is uncertain. The PDUFA date may revive interest in the NASH sector, but it's unclear how this will translate into short-term stock movement for Madrigal.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
89Bio Inc downgraded by RBC Capital Markets due to short-term uncertainties in NASH drug development, with a reduced price target from $24 to $15.
The downgrade by RBC Capital Markets and the reduction in price target from $24 to $15 reflect significant short-term uncertainties and a more cautious outlook on the company's lead drug, pegozafermin. This is likely to negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100