- 89bio has emerged as a competitive player in the race to have a treatment approved for nonalcoholic steatohepatitis (“NASH”) - a potential multi-billion dollar market.
- The company recently posted strong data from a phase 1b/2a trial showing 60% reduction in liver fat after 13 weeks versus baseline - which compares favourably with rivals.
- Two recent fundraisings totalling >$140m have depressed the share price, which has fallen from $38, to $24 at the time of writing.
- The company hopes to initiate a pivotal trial in NASH in 2021 and has a sideline opportunity in SHTG - which management believes is a >$1bn market opportunity.
- Many biotechs have tried and failed to secure approval in NASH, but 89bio's differentiated approach can be considered a strong candidate in my view. I believe the stock will recover recent losses by YE20 and could trade >$100 if it wins an approval.
For further details see:
89bio: Near And Long-Term Investment Cases Excite As Company Targets NASH Opportunity