BofA says 89bio should trade with strength after ‘win for entire MASH space’

After the FDA approved Madrigal’s (MDGL) Rezdiffra, or resmetirom, a thyroid beta agonist for patients with metabolic dysfunction-associated steatohepatitis, or MASH, with F2-F3 stage fibrosis, BofA analyst Geoff Meacham called the news “a win for the entire MASH space.” Given the clean label assigned to Rezdiffra, the firm expects 89bio (ETNB) to “trade with strength as the rising MASH tide could lift all ships,” particularly given past regulatory challenges in MASH that made investors cautious on the commercial opportunity. The firm maintains a Buy rating and $30 price target on 89bio shares, which are up 51c, or 4%, to $13.12 in Friday morning trading.