SAN FRANCISCO—Rohan Palekar, the Chief Executive Officer of 89bio, Inc. (NASDAQ:ETNB), recently purchased 5,000 shares of the company's common stock. The transaction, which took place on December 6, 2024, was executed at a price of $7.89 per share, amounting to a total investment of $39,450. The purchase comes as the stock trades near its 52-week low of $7.00, having declined 8% in the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
Following this acquisition, Palekar's direct ownership in 89bio increased to 471,236 shares. This move reflects the CEO's continued confidence in the company's prospects in the pharmaceutical sector, despite analysts recently revising earnings expectations downward. The company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 11.66. Want deeper insights into insider trading patterns and 12+ additional ProTips? Discover more with InvestingPro.
89bio, based in San Francisco, focuses on developing innovative treatments for liver and cardio-metabolic diseases. The company is listed on the NASDAQ under the ticker symbol ETNB, with a current market capitalization of approximately $942 million. Analyst price targets range from $12 to $49, suggesting significant potential upside from current levels.
In other recent news, clinical-stage biopharmaceutical company 89bio, Inc. has reported significant progress in the Phase 2b ENLIVEN trial of pegozafermin, a potential treatment for metabolic dysfunction-associated steatohepatitis (MASH) and advanced fibrosis. The trial data, presented at The American Association for the Study of Liver Diseases (AASLD) The Liver Meeting®, suggest that pegozafermin may reverse fibrosis and prevent progression to cirrhosis in patients with advanced MASH.
In addition, 89bio has announced a major public offering and the issuance of pre-funded warrants in partnership with Goldman Sachs & Co. LLC, Leerink Partners LLC, and Evercore Group L.L.C. The company is expected to net approximately $118.4 million from this offering.
On the leadership front, 89bio has welcomed Francis Sarena as Chief Operating Officer and Dr. Charles McWherter to its Board of Directors. In terms of analyst updates, UBS has maintained a Buy rating on 89bio, while Evercore ISI and others adjusted their price targets due to projected expenses.
These are recent developments as 89bio continues its clinical development of pegozafermin, with ongoing Phase 3 trials in MASH and severe hypertriglyceridemia. Results from these advanced clinical trials are anticipated in 2025.
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