89bio Inc (ETNB) Reports Increased R&D Spend and Strengthened Cash Position in Q4 and Full ...
Cash Reserves: Ended the year with $578.9 million in cash, cash equivalents, and marketable securities.
R&D Expenses: R&D expenses rose to $33.6 million for Q4 and $122.2 million for the full year, reflecting increased investment in clinical programs.
G&A Expenses: G&A expenses increased to $7.6 million for Q4 and $29.0 million for the full year, due to personnel growth and professional service fees.
Net Loss: Net loss widened to $40.2 million for Q4 and $142.2 million for the full year, driven by higher R&D and G&A expenses.
Clinical Development: Positive Phase 2b ENLIVEN trial results and preparations for Phase 3 trials in NASH and ongoing SHTG trial.
On February 29, 2024, 89bio Inc (NASDAQ:ETNB) released its 8-K filing, detailing the financial results for the fourth quarter and full year of 2023, along with providing updates on corporate milestones. As a clinical-stage biopharmaceutical company, 89bio is at the forefront of developing therapies for liver and cardio-metabolic diseases, with a particular focus on its lead product candidate, pegozafermin, for the treatment of nonalcoholic steatohepatitis (NASH) and severe hypertriglyceridemia (SHTG).
Financial Highlights and Corporate Developments
The company reported a strengthened cash position, ending the year with $578.9 million, a significant increase from the $188.2 million reported at the end of 2022. This financial boost was largely due to a successful follow-on offering in Q4 2023, which generated $172.5 million in gross proceeds.
Research and Development (R&D) expenses saw a substantial increase to $33.6 million in Q4 and $122.2 million for the full year, up from $19.1 million and $80.8 million in the corresponding periods of the previous year. The rise in R&D expenses was primarily attributed to contract manufacturing costs and personnel-related expenses as the company ramps up its clinical development programs.
General and Administrative (G&A) expenses also rose to $7.6 million in Q4 and $29.0 million for the full year, compared to $6.3 million and $21.5 million in the prior year. This increase was due to higher personnel-related expenses, employee headcount growth, stock-based compensation, and consultant and professional service fees, partially offset by a decrease in insurance-related costs.
The net loss for the company widened to $40.2 million for Q4 and $142.2 million for the full year, compared to a net loss of $24.6 million and $102.0 million for the same periods in 2022. The increased net loss reflects the higher R&D and G&A expenses, offset by an uptick in interest income.
Strategic Clinical Advancements
CEO Rohan Palekar highlighted the company's progress, noting the anti-fibrotic and metabolic benefits of pegozafermin demonstrated in the Phase 2b ENLIVEN trial. The data showed sustained benefits over a 48-week period, positioning pegozafermin as a potential best-in-class FGF21 therapy. The company is preparing to initiate Phase 3 trials for NASH and is currently conducting a Phase 3 trial for SHTG.
89bio's commitment to advancing pegozafermin is underscored by the Breakthrough Therapy Designation granted by the FDA for the treatment of NASH with fibrosis. The company's focus remains on delivering new therapeutic options and establishing a new standard of care for patients with these challenging conditions.
The financial results and corporate updates from 89bio Inc (NASDAQ:ETNB) reflect a year of strategic investment in research and development, setting the stage for pivotal clinical trials. The company's strengthened cash position ensures the continued pursuit of innovative treatments for liver and cardiometabolic diseases, with the potential to significantly impact patient care.
For more detailed information on 89bio Inc's financials and corporate updates, investors and interested parties are encouraged to visit the company's website and review the full 8-K filing.
Explore the complete 8-K earnings release (here) from 89bio Inc for further details.
This article first appeared on GuruFocus.
