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89bio downgraded to Perform at Oppenheimer on reduced FGF21 confidence

Oppenheimer downgraded 89bio (ETNB) to Perform from Outperform and removed the firm’s prior $30 price target on shares after competitor Akero Therapeutics (AKRO) announced data from its own phase IIb SYMMETRY study of efruxifermin in patients with F4 nonalcoholic steatohepatitis, or NASH. Akero’s study missed the primary endpoint of greater than or equal to 1-stage fibrosis improvement by week-36 and the firm has “reduced confidence” for the FGF21 approach to address F4 NASH patients, the analyst tells investors. The firm also has “increased optimism” for Madrigal Pharmaceuticals’ (MDGL) resmetirom to capture the F2-3 NASH market, the analyst added.

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