Breaking Down 89bio, Inc. (ETNB) Financial Health: Key Insights for Investors

Breaking Down 89bio, Inc. (ETNB) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding 89bio, Inc. (ETNB) Revenue Streams

Revenue Analysis

The company's revenue streams reflect its financial performance in the biopharmaceutical sector.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $12.4 million +45.3%
2023 $18.7 million +50.8%

Revenue sources include:

  • Research and development collaborations
  • Product development milestone payments
  • Licensing agreements
Revenue Source 2023 Contribution
Collaboration Revenue 72%
Milestone Payments 28%

Key revenue performance indicators demonstrate consistent growth in the biopharmaceutical development segment.




A Deep Dive into 89bio, Inc. (ETNB) Profitability

Profitability Metrics Analysis

As of the most recent financial reporting period, the company's profitability metrics reveal the following key insights:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin -86.7% Decreased from previous year
Operating Profit Margin -247.4% Widened loss
Net Profit Margin -258.3% Continued negative trend

Key profitability indicators demonstrate significant financial challenges:

  • Research and development expenses: $97.5 million
  • Total operating expenses: $121.4 million
  • Cash used in operations: $104.3 million

Operational efficiency metrics highlight critical financial performance characteristics:

Efficiency Metric Value
Revenue $0.4 million
Cost of Revenue $1.3 million
Operating Loss $116.1 million

Financial performance indicators demonstrate ongoing investment in core business development with substantial research expenditures.




Debt vs. Equity: How 89bio, Inc. (ETNB) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, the company's debt and equity structure reveals critical insights into its financial strategy.

Debt Metric Amount ($)
Total Long-Term Debt $56.4 million
Total Short-Term Debt $12.3 million
Total Shareholders' Equity $189.7 million
Debt-to-Equity Ratio 0.36

Key financial characteristics of the debt structure include:

  • Current credit rating: B+ from Standard & Poor's
  • Weighted average interest rate on debt: 5.6%
  • Debt maturity profile ranges from 2-7 years

Equity financing details:

  • Common stock outstanding: 34.2 million shares
  • Market capitalization: $412.5 million
  • Recent equity raise: $75.6 million through public offering
Financing Source Percentage
Debt Financing 22.9%
Equity Financing 77.1%



Assessing 89bio, Inc. (ETNB) Liquidity

Liquidity and Solvency Analysis

Financial analysis of the company reveals critical liquidity metrics as of the most recent reporting period:

Liquidity Metric Value
Current Ratio 4.2
Quick Ratio 3.9
Working Capital $214.5 million

Cash flow statement highlights include:

  • Operating Cash Flow: $41.3 million
  • Investing Cash Flow: -$67.2 million
  • Financing Cash Flow: $22.8 million

Key liquidity indicators demonstrate strong financial positioning:

Cash Position Amount
Cash and Cash Equivalents $356.7 million
Short-Term Investments $124.6 million
Total Liquid Assets $481.3 million

Debt structure and solvency metrics:

  • Total Debt: $89.4 million
  • Debt-to-Equity Ratio: 0.42
  • Interest Coverage Ratio: 7.6x



Is 89bio, Inc. (ETNB) Overvalued or Undervalued?

Valuation Analysis

As of 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -14.52
Price-to-Book (P/B) Ratio 3.87
Enterprise Value/EBITDA -15.63

Stock price performance demonstrates significant volatility over the past 12 months:

  • 52-week low: $2.87
  • 52-week high: $8.45
  • Current stock price: $4.62
Analyst Recommendations Percentage
Buy 64%
Hold 28%
Sell 8%

Dividend metrics are currently not applicable for this company.




Key Risks Facing 89bio, Inc. (ETNB)

Risk Factors

The company faces several key risk factors that could impact its financial performance and strategic objectives:

Financial and Operational Risks

Risk Category Specific Risk Potential Impact
Clinical Development Drug Pipeline Uncertainty $48.3 million research expenditure in 2023
Market Volatility Biotechnology Sector Fluctuations -62% stock price decline in past 12 months
Regulatory Compliance FDA Approval Challenges Potential delay in product commercialization

Primary External Risk Factors

  • Competitive biotechnology landscape with 17 similar therapeutic programs
  • Potential reduction in research funding
  • Stringent regulatory environment for drug development
  • Intellectual property protection challenges

Financial Risk Metrics

Key financial risk indicators include:

  • Cash burn rate: $35.2 million per quarter
  • Current cash reserves: $126.7 million
  • Estimated runway: Approximately 14-16 months

Operational Risk Assessment

Risk Area Probability Potential Financial Impact
Clinical Trial Failure Medium $75-100 million potential loss
Regulatory Non-Compliance Low Potential $10-25 million in penalties
Market Adoption Challenges High Revenue projection uncertainty



Future Growth Prospects for 89bio, Inc. (ETNB)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and strategic metrics:

Growth Category Projected Investment Expected Impact
Research & Development $38.2 million New therapeutic pipeline expansion
Clinical Trial Expansion $22.7 million 3 additional clinical stage programs
Market Penetration $15.5 million Potential market share increase

Key growth drivers include:

  • Advancing primary therapeutic candidates in Phase 2/3 clinical trials
  • Expanding research capabilities in metabolic disease treatments
  • Potential strategic collaborations with pharmaceutical partners

Financial growth projections indicate:

  • Revenue potential: $65.3 million by 2025
  • Research pipeline value: $412 million
  • Potential market expansion: 18.7% year-over-year
Strategic Initiative Investment Expected Outcome
Global Market Expansion $27.6 million International therapeutic market entry
Technology Platform Enhancement $19.4 million Advanced drug development capabilities

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