89bio price target lowered to $27 from $34 at RBC Capital

RBC Capital lowered the firm’s price target on 89bio (ETNB) to $27 from $34 and keeps an Outperform rating on the shares after FGF21 competitor Akero Therapeutics (AKRO) announced data from its own phase IIb SYMMETRY study of efruxifermin in patients with compensated cirrhosis due to nonalcoholic steatohepatitis, or NASH. Akero’s data suggests FGF21s, like many other classes, may be more challenged to work in patients with considerable existing fibrosis and the firm acknowledges that “this adds risk” for 89bio. In addition to looking “disappointing on efficacy,” Akero’s data showed some safety signals, highlighting some risks for the class in NASH drug development, although the firm sees “reasons to believe” pegozafermin “could still work in F4” patients. Despite lowering the firm’s price target on increased risks, the analyst still sees 89bio’s share price “undervaluing pegoza’s potential,” the analyst added.