SAN FRANCISCO – 89bio, Inc. (NASDAQ:), a clinical-stage biopharmaceutical company, announced Monday the appointment of Francis Sarena as Chief Operating Officer. Sarena brings over two decades of experience to the company, which specializes in developing therapies for liver and cardiometabolic diseases.
The CEO of 89bio, Rohan Palekar, highlighted Sarena’s strategic and operational expertise as crucial for the company’s upcoming phase. Sarena’s background includes significant roles in business development and leadership, particularly during periods of growth and development. His experience is expected to be beneficial as 89bio prepares for potential regulatory filings and commercialization, especially for their lead candidate, pegozafermin.
Sarena expressed his eagerness to join 89bio, emphasizing the clinical promise of pegozafermin, which is currently in Phase 3 studies for the treatment of metabolic dysfunction-associated steatohepatitis (MASH) and severe hypertriglyceridemia (SHTG). He noted the drug’s potential to meet unmet needs in these patient populations.
Before his new role at 89bio, Sarena served as President and COO at Apexigen, Inc., contributing to its acquisition by Pyxis Oncology, Inc. He also held leadership positions at Five Prime Therapeutics (NASDAQ:), Inc., which was acquired by Amgen (NASDAQ:), Inc. in 2021. His career began in law, focusing on M&A, financing transactions, and corporate governance. Sarena holds a JD (NASDAQ:) from the University of California, Berkeley, and a BS in finance from San Francisco State University.
Pegozafermin, an engineered fibroblast growth factor 21 (FGF21) analog, is designed to optimize biological activity and has shown encouraging clinical results. The company’s forward-looking statements indicate ongoing clinical trials and the anticipation of future results, while also acknowledging the risks and uncertainties inherent in drug development.
In other recent news, 89bio Inc . has seen adjustments in its stock price targets by several firms. UBS maintained its Buy rating with a steady price target of $25.00 following the presentation of full results for survodutide. However, Evercore ISI reduced 89bio’s price target to $33 due to projected expenses, while H.C. Wainwright lowered its target to $29, but sustained a Buy rating. In contrast, RBC Capital Markets cut the price target to $13.00 due to model adjustments but maintained its Sector Perform rating.
These adjustments come amidst 89bio’s progress with its drug candidate, pegozafermin, which is in advanced clinical trials for treating Metabolic Associated Steatohepatitis (MASH). The company is also conducting Phase 3 studies for severe hypertriglyceridemia (SHTG), with results expected in 2025.
InvestingPro Insights
As 89bio, Inc. (NASDAQ:ETNB) welcomes Francis Sarena as its new Chief Operating Officer, the company’s financial health and market performance remain essential considerations for investors. With a market capitalization of approximately $840.93 million, 89bio is navigating a challenging landscape, underscored by its recent stock performance. Over the last week, the company’s stock has declined by 13.32%, reflecting volatility that shareholders have been facing.
InvestingPro Tips for 89bio highlight several critical factors that investors should consider. Firstly, the company holds more cash than debt on its balance sheet, indicating a solid liquidity position which could support its operational and developmental needs. Secondly, two analysts have recently revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company’s financial prospects. However, it’s important to note that analysts do not expect the company to be profitable this year, and net income is projected to decline.
From a financial metrics perspective, 89bio does not have a traditional P/E ratio due to lack of profitability over the last twelve months, with an adjusted P/E ratio of -4.6 indicating the market’s expectations of future earnings. The company’s Price to Book ratio stands at 1.63, offering some insight into how the market values the company relative to its book value. Additionally, with an EBITDA of -$191.22 million and an EBITDA growth of -55.46%, 89bio’s operational losses are substantial, which aligns with the company’s status as a clinical-stage biopharmaceutical firm investing heavily in research and development.
Investors interested in a deeper dive into 89bio’s performance and prospects can find more InvestingPro Tips by visiting https://www.investing.com/pro/ETNB. There, additional insights into the company’s financial health and market position are available, providing valuable context as 89bio advances its lead candidate, pegozafermin, through clinical trials.
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