This Analyst Thinks 89Bio's Pegozafermin Data Has Exceeded Expectations

In June, 89bio Inc ETNB announced topline results from the ENTRIGUE Phase 2 proof-of-concept study of pegozafermin for severe hypertriglyceridemia (SHTG).
SVB Leerink views these results as 'strong' and says they provide a clear win for the company as all doses of pegoza demonstrated statistically significant and clinically meaningful reductions in triglycerides, exceeding KOL expectations ahead of the results.
The analysts say that pegoza's safety/tolerability profile continues to look favorable vs. Akero Therapeutics Inc's AKRO efruxifermin, with lower rates of GI toxicity (diarrhea, nausea, vomiting) and no apparent CNS/tremor signal.
SVB has updated its model to reflect a higher probability of success (70% from 35%) and higher peak sales (~$700 million from ~$660 million) in SHTG based on the Phase 2 results and the latest equity offering.
The analyst has lowered the price target to $29 from $50 and reiterates the Out-Perform rating.
"Overall, we continue to view pegozafermin as a potentially best-in-class FGF21 analog, based on its competitive efficacy profile — now shown across multiple indications — and emerging differentiation on safety/ tolerability," SVB wrote.
Price Action: ETNB shares are down 4.48% at $3.41 during the market session on the last check Monday.

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