SAN FRANCISCO - 89bio, Inc. (NASDAQ:ETNB), a biopharmaceutical company specializing in liver and cardiometabolic diseases, announced the appointment of Martin Babler to its Board of Directors, effective last Thursday. Babler, who is the President, CEO, and Chairman of Alumis Therapeutics, brings over three decades of experience in the pharmaceutical and biotech sectors to the table.
Rohan Palekar, CEO of 89bio, expressed confidence that Babler's extensive background in leading companies through commercialization stages will be a significant asset as 89bio progresses with its Phase 3 programs for pegozafermin, a treatment for metabolic dysfunction-associated steatohepatitis (MASH).
Babler's career includes leadership roles at Principia Biopharma (NASDAQ:PRNB), Talima Therapeutics, and Genentech. He has also held various positions at Eli Lilly and Company (NYSE:LLY). His experience is expected to contribute strategic insight to 89bio's development efforts.
The ENLIGHTEN program, under which pegozafermin is being evaluated, includes two Phase 3 trials. The ENLIGHTEN-Fibrosis trial aims to enroll around 1,000 non-cirrhotic MASH patients to assess the drug's safety and efficacy. The second trial, ENLIGHTEN-Cirrhosis, will focus on MASH patients with compensated cirrhosis.
Pegozafermin has shown promise in clinical trials by demonstrating direct anti-fibrotic and anti-inflammatory effects on the liver, along with improvements in triglyceride levels, insulin resistance, and glycemic control. The U.S. Food and Drug Administration (FDA) has granted pegozafermin Breakthrough Therapy designation, while the European Medicines Agency (EMA) has awarded it Priority Medicines status for treating MASH with fibrosis.
The addition of Babler to 89bio's board comes at a critical juncture as the company prepares for the commercialization of its lead program. Babler commented on the momentum within the metabolic disease space and expressed enthusiasm for joining 89bio at this pivotal time.
InvestingPro Insights
As 89bio, Inc. (NASDAQ:ETNB) welcomes Martin Babler to its Board of Directors amidst advancing its Phase 3 programs for pegozafermin, investors may find it valuable to consider the company's financial health and market performance. With a market capitalization of approximately $856.47 million, 89bio is navigating a challenging financial landscape, reflected in its negative P/E ratio of -4.59, indicating investor concerns about profitability.
An analysis of the company's performance over the last twelve months as of Q4 2023 shows that 89bio has not been profitable, with an EBITDA of -$151.15 million and a concerning EBITDA growth rate of -47.92%. These figures underscore the company's cash burn issues, which are echoed by one of the InvestingPro Tips stating that 89bio is quickly burning through cash. Additionally, the stock has experienced significant volatility, with a 30.7% drop in price total return over the last month, yet a notable 29.96% uptick over the past six months.
Despite these challenges, 89bio holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, suggesting some degree of financial resilience. Moreover, three analysts have recently revised their earnings estimates upwards for the upcoming period, hinting at potential optimism surrounding the company's future prospects.
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