89bio Inc (ETNB) Reports Increased R&D and G&A Expenses in Q3 2023
89bio Inc (NASDAQ:ETNB) reported a net loss of $34.7 million in Q3 2023, with increased R&D and G&A expenses.
The company's cash, cash equivalents, and short-term investments totaled $448.3 million as of September 30, 2023.
Pegozafermin, the company's lead candidate, received Breakthrough Therapy Designation for NASH with fibrosis treatment.
Phase 3 development program for pegozafermin in NASH expected to initiate in the first half of 2024.
On November 8, 2023, 89bio Inc (NASDAQ:ETNB), a clinical-stage biopharmaceutical company, released its financial results for the third quarter ended September 30, 2023. The company, which specializes in developing therapies for liver and cardiometabolic diseases, highlighted its progress with pegozafermin, a potential treatment for nonalcoholic steatohepatitis (NASH) and severe hypertriglyceridemia (SHTG).
Financial Performance Overview
89bio Inc (NASDAQ:ETNB) reported a net loss of $34.7 million for the third quarter of 2023, which is an increase from the net loss of $26.8 million for the same period in 2022. This increase in net loss is primarily due to higher Research and Development (R&D) expenses, which rose to $31.4 million from $22.2 million in the previous year, and General and Administrative (G&A) expenses, which increased to $7.9 million from $4.8 million.
Research and Development Investments
The rise in R&D expenses was mainly driven by higher contract manufacturing costs and personnel expenses, although there was a decrease in clinical development costs. CEO Rohan Palekar commented on the company's advancements, stating,
We are making excellent progress in developing pegozafermin as a potential leading treatment for liver and cardiometabolic diseases,"
and highlighted the FDAs Breakthrough Therapy Designation as a significant milestone for pegozafermin's potential in NASH.
Corporate and Financial Stability
89bio Inc (NASDAQ:ETNB) maintained a strong cash position with $448.3 million in cash, cash equivalents, and short-term available-for-sale securities as of September 30, 2023. This robust financial standing supports the company's ongoing clinical trials and development programs. The company is preparing for regulatory feedback on its Phase 3 development program in NASH, with expectations to initiate the program in the first half of 2024.
Looking Ahead
89bio Inc (NASDAQ:ETNB) is also continuing to enroll patients in ENTRUST, the Phase 3 trial of pegozafermin in patients with SHTG. The company is focused on addressing the significant disease burden and unmet medical needs of patients with NASH and SHTG. Data from ENLIVEN in patients with cirrhotic (F4) NASH will be featured in an oral presentation during the American Association for the Study of Liver Diseases (AASLD) The Liver Meeting.
For more detailed financial information and future updates on 89bio Inc (NASDAQ:ETNB), investors and interested parties are encouraged to visit the company's website and follow their LinkedIn profile.
Explore the complete 8-K earnings release (here) from 89bio Inc for further details.
This article first appeared on GuruFocus.
