With data to propel it into PhIII, 89bio asks market for nearly $100M to bankroll ex-Teva drug

89bio, born out of a Teva drug, is the latest to board the speed rail that takes biotechs from positive clinical data drop to cash request within a minute.

The San Francisco biotech revealed a mid-stage test that passed muster in a high-fat condition that sometimes leads to cardiovascular disease, and a minute afterwards in a Tuesday post-market release, 89bio asked investors for $75 million. Hours later, past midnight, they upsized the public offering to $94.5 million.

Shares $ETNB were trending down slightly, at about 4%, before Wednesday’s opening bell.

Proceeds will bankroll a Phase III test of pegozafermin and an ongoing mid-stage study of the drug in NASH. Picked up through the Israeli generics maker, 89bio launched in October 2018 and went public 13 months later to develop the FGF21 analog.

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