89bio, Inc. (ETNB) Bundle
A Brief History of 89bio, Inc.
89bio, Inc., a clinical-stage biopharmaceutical company, was formed in June 2019 as a Delaware corporation, following the business of 89Bio Ltd., which was incorporated in Israel in January 2018. The company focuses on developing therapies for liver and cardio-metabolic diseases, with its lead product candidate, pegozafermin, aimed at treating metabolic dysfunction-associated steatohepatitis (MASH) and severe hypertriglyceridemia (SHTG).
Financial Performance Overview
As of September 30, 2024, 89bio reported total cash, cash equivalents, and marketable securities amounting to $423.8 million. The company has incurred significant losses since inception, with an accumulated deficit of $706.2 million.
Stock Performance and Share Issuance
In March 2023, 89bio completed an underwritten public offering, selling 19,461,538 shares at a price of $16.25 per share, resulting in net proceeds of $296.8 million after deducting underwriting discounts and commissions. In December 2023, another public offering raised $161.8 million, net of costs.
Research and Development Expenses
For the nine months ending September 30, 2024, research and development expenses surged to $145.1 million, primarily due to increased contract manufacturing costs and the initiation of two Phase 3 clinical trials. R&D expenses for the same period in 2023 were significantly lower.
| Category | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Research and Development Expenses | $145.1 million | Not specified |
| General and Administrative Expenses | $25.1 million | Not specified |
Market Capitalization and Stock Options
As of September 30, 2024, the company had 106,126,338 shares of common stock outstanding. The outstanding stock options and RSUs totaled approximately 8.6 million shares, which includes 7,454,242 stock options and 1,155,462 RSUs.
Debt and Liquidity
89bio entered into a loan agreement in January 2023, with a principal amount of up to $150 million. As of September 30, 2024, the company had a total net carrying value of $35.5 million under this loan agreement, with an interest rate of 9.75%.
| Loan Details | Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan | $35.5 million | 9.75% | October 1, 2028 |
Future Outlook
The company anticipates continuing its clinical development activities, with no products currently approved for commercial sale. The ongoing capital and operational strategies aim to support the advancement of its lead product candidate, pegozafermin.
A Who Owns 89bio, Inc. (ETNB)
Major Shareholders
As of 2024, the ownership structure of 89bio, Inc. (ETNB) includes a mix of institutional investors, insider ownership, and public shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership (%) | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 9.5% | 10,200,000 |
| The Vanguard Group, Inc. | 8.2% | 8,500,000 |
| FMR LLC (Fidelity) | 7.0% | 7,300,000 |
| Wellington Management Company, LLP | 6.5% | 6,800,000 |
| Insider Ownership (Executive Team) | 5.1% | 5,400,000 |
| Other Institutional Investors | 13.7% | 14,500,000 |
| Public Float | 50.0% | 53,000,000 |
Recent Stock Performance
As of September 30, 2024, the stock performance of 89bio, Inc. (ETNB) has shown fluctuations influenced by market conditions and company announcements. The closing stock price was $11.19 per share. The stock has experienced a 52-week range from $5.00 to $15.00, reflecting volatility in investor sentiment and operational updates.
Financial Overview
For the nine months ended September 30, 2024, 89bio, Inc. reported the following financial metrics:
| Metric | Amount (in thousands) |
|---|---|
| Net Loss | $248,725 |
| Research and Development Expenses | $233,734 |
| General and Administrative Expenses | $28,917 |
| Total Operating Expenses | $262,651 |
| Cash and Marketable Securities | $423,800 |
| Accumulated Deficit | $706,157 |
Liquidity and Capital Resources
As of September 30, 2024, 89bio, Inc. had cash, cash equivalents, and marketable securities totaling $423.8 million. The company has utilized its liquidity primarily for research and development activities, with a significant portion allocated to advancing its lead product candidate, pegozafermin.
Debt Obligations
The company has a term loan with an outstanding principal amount of $35 million, scheduled to mature on October 1, 2028. The loan agreement allows for interest-only payments until January 1, 2027, with interest rates set at 9.75%.
Stock Options and Warrants
As of September 30, 2024, 89bio had the following stock options and warrants outstanding:
| Type | Outstanding Shares | Exercise Price |
|---|---|---|
| Stock Options | 7,454,242 | $11.19 |
| Warrants | 517,078 | $9.76 |
Conclusion on Ownership and Financial Health
89bio, Inc. has a diversified ownership structure with significant institutional holdings and insider participation. The company's financial health is characterized by substantial cash reserves, ongoing operational losses, and a focus on advancing its product pipeline, which is expected to continue influencing its market position and investor interest moving forward.
89bio, Inc. (ETNB) Mission Statement
Company Overview
89bio, Inc. is a biopharmaceutical company focused on the development of innovative therapies for patients with metabolic diseases and liver conditions. The company's lead product candidate, pegozafermin, is designed to address significant unmet medical needs in the treatment of nonalcoholic steatohepatitis (NASH) and other related diseases.
Mission Statement
89bio's mission is to advance the development of pegozafermin and other potential therapies to improve the lives of patients suffering from liver diseases and metabolic disorders. The company is committed to conducting rigorous clinical research and development, ensuring high standards of safety and efficacy in its product candidates.
Financial Overview
As of September 30, 2024, 89bio, Inc. has reported significant financial metrics that underline its operational and strategic goals:
| Financial Metric | Amount (in millions) |
|---|---|
| Cash, Cash Equivalents, and Marketable Securities | $423.8 |
| Accumulated Deficit | $(706.2) |
| Net Loss for Nine Months Ended September 30, 2024 | $(248.7) |
| Research and Development Expenses (Nine Months 2024) | $233.7 |
| General and Administrative Expenses (Nine Months 2024) | $28.9 |
| Interest Income and Other, Net (Nine Months 2024) | $18.5 |
| Net Proceeds from Public Offerings (March 2023) | $296.8 |
| Net Proceeds from Public Offerings (December 2023) | $161.8 |
| Net Proceeds from ATM Offerings (Nine Months 2024) | $21.0 |
Research and Development Focus
The primary focus of 89bio's R&D efforts is on pegozafermin, which is currently undergoing multiple Phase 3 clinical trials, including ENLIGHTEN-Fibrosis and ENLIGHTEN-Cirrhosis. The company has significantly increased its investment in contract manufacturing and clinical development:
| Expense Category | Amount (in millions) |
|---|---|
| Contract Manufacturing Costs | $144.8 |
| Clinical Development Costs | $62.9 |
| Personnel-Related Expenses | $23.9 |
| Other R&D Expenses | $2.2 |
The increase in research and development expenses reflects the company's commitment to advancing its clinical programs and ensuring that it meets regulatory requirements while maintaining high standards of quality and safety.
Operational Metrics
89bio's operational metrics as of September 30, 2024, provide insight into its market position and growth strategy:
| Operational Metric | Value |
|---|---|
| Shares Outstanding | 106,126,338 |
| Weighted Average Shares Used for Net Loss Calculation | 107,075,197 |
| Net Loss per Share (Nine Months 2024) | $(2.46) |
| Stock-Based Compensation Expense (Nine Months 2024) | $15.4 |
89bio is strategically positioned to leverage its financial resources and operational capabilities to further its mission of addressing significant unmet medical needs in liver diseases and metabolic disorders.
How 89bio, Inc. (ETNB) Works
Overview of Operations
89bio, Inc. is a biopharmaceutical company focused on the development and commercialization of innovative therapeutics for patients with metabolic diseases. The company's lead product candidate is pegozafermin, a glycoPEGylated long-acting FGF21 analog, aimed at treating nonalcoholic steatohepatitis (NASH) and other metabolic disorders.
Financial Performance
As of September 30, 2024, 89bio, Inc. reported significant financial metrics:
| Metric | Value (2024) |
|---|---|
| Cash, Cash Equivalents and Marketable Securities | $423.8 million |
| Accumulated Deficit | $706.2 million |
| Net Loss for Nine Months Ended September 30 | $248.7 million |
| Net Loss per Share | $(2.46) |
Operating Expenses
The company’s operating expenses for the nine months ended September 30, 2024 were as follows:
| Expense Category | Amount (in thousands) |
|---|---|
| Research and Development | $233,734 |
| General and Administrative | $28,917 |
| Total Operating Expenses | $262,651 |
Research and Development Expenses
For the nine months ended September 30, 2024, research and development expenses increased significantly, driven by various factors:
| Category | Amount (in thousands) |
|---|---|
| Contract Manufacturing | $144,764 |
| Clinical Development | $62,872 |
| Personnel-related Expenses | $23,904 |
Capital Raising Activities
89bio, Inc. has employed various strategies to raise capital, including:
- Underwritten public offerings, raising net proceeds of $296.8 million in March 2023 and $161.8 million in December 2023.
- At-the-Market (ATM) offerings, where the company raised $21.0 million during the nine months ended September 30, 2024.
- Exercise of common stock warrants, generating $54.2 million during the nine months ended September 30, 2024.
Debt Obligations
As of September 30, 2024, the company had a term loan facility with an outstanding principal amount of $35.0 million, scheduled to mature on October 1, 2028.
Stockholder Equity
The components of stockholder equity as of September 30, 2024 are detailed below:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $106 |
| Additional Paid-in Capital | $1,082,884 |
| Accumulated Other Comprehensive Income | $1,269 |
| Accumulated Deficit | $(706,157) |
| Total Stockholders’ Equity | $378,102 |
Cash Flows
For the nine months ended September 30, 2024, cash flow activities were as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Used in Operating Activities | $(246,243) |
| Net Cash Used in Investing Activities | $(60,688) |
| Net Cash Provided by Financing Activities | $82,181 |
Clinical Trials
89bio is actively engaged in clinical development, including two Phase 3 clinical trials: ENLIGHTEN-Fibrosis and ENLIGHTEN-Cirrhosis.
How 89bio, Inc. (ETNB) Makes Money
Revenue Streams
89bio, Inc. generates revenue primarily through financing activities and collaborations related to its lead product candidate, pegozafermin. The company has not yet reported revenue from product sales as it is still in clinical development phases.
Financing Activities
The company has relied heavily on various financing mechanisms to support its operations, primarily through public offerings and exercises of common stock warrants. Key financial data for the nine months ended September 30, 2024, includes:
| Source of Funds | Amount (in millions) |
|---|---|
| Public Offerings | $296.8 |
| At-the-Market Offerings | $21.0 |
| Warrant Exercises | $54.2 |
| Term Loan Facility | $9.3 |
| Net Cash from Financing Activities | $350.9 |
Research and Development Expenses
89bio, Inc. incurs substantial expenses in research and development, which are essential for advancing its product candidates through clinical trials. The following table outlines the R&D expenses for the nine months ended September 30, 2024:
| Expense Type | Amount (in millions) |
|---|---|
| Contract Manufacturing | $144.8 |
| Clinical Development | $62.9 |
| Personnel-related Expenses | $23.9 |
| Other Expenses | $2.2 |
| Total R&D Expenses | $233.7 |
Net Loss and Financial Position
As of September 30, 2024, 89bio reported a net loss of $248.7 million. The company has an accumulated deficit of $706.2 million and maintains liquidity through cash, cash equivalents, and marketable securities amounting to $423.8 million.
Stockholder Equity
The equity structure of 89bio reflects its financing activities. As of September 30, 2024, the stockholder equity is summarized as follows:
| Component | Amount (in millions) |
|---|---|
| Common Stock | $106.1 |
| Additional Paid-in Capital | $1,082.9 |
| Accumulated Deficit | $(706.2) |
| Total Stockholders' Equity | $378.1 |
Future Revenue Potential
Looking forward, 89bio's potential for revenue generation will depend on the successful commercialization of pegozafermin, which is currently in Phase 3 clinical trials. The company has secured manufacturing capacity through a collaboration with BiBo Biopharma Engineering Co., Ltd., which is critical for meeting future commercial needs.
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Resources:
- 89bio, Inc. (ETNB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of 89bio, Inc. (ETNB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View 89bio, Inc. (ETNB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.