89bio Announces Closing of its Public Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

89bio (Nasdaq: ETNB) has successfully closed its previously announced public offering, raising approximately $287.5 million in gross proceeds. The offering included 25,957,142 shares of common stock at $8.75 per share, with underwriters fully exercising their option to purchase an additional 4,285,714 shares. Additionally, the company offered pre-funded warrants for up to 6,900,000 shares at $8.749 per warrant.

The offering was managed by Goldman Sachs & Co. , Leerink Partners, and BofA Securities as lead book-running managers, with Cantor acting as book-running manager. The securities were offered through an automatically effective shelf registration statement filed with the SEC on May 23, 2023.

Positive

• Successfully raised $287.5 million in gross proceeds
• Full exercise of underwriters' option indicates strong demand
• Multiple tier-1 investment banks involved in the offering

Negative

• Significant shareholder dilution due to issuance of 25.9 million new shares
• Additional potential dilution from 6.9 million pre-funded warrants
• Offering price of $8.75 may represent a discount to market price

Insights

Financial Analyst

The successful completion of 89bio's $287.5 million public offering marks a pivotal moment for the clinical-stage biopharmaceutical company. The strong institutional backing, evidenced by the full exercise of the underwriters' option, signals robust confidence in 89bio's pipeline and strategy. The participation of top-tier investment banks - Goldman Sachs, Leerink Partners and BofA Securities - adds significant credibility to the offering.

The offering's structure, combining common stock with pre-funded warrants, demonstrates sophisticated financial engineering to accommodate different investor preferences while minimizing immediate dilution impacts. The pricing at $8.75 per share represents a calculated balance between capital needs and market conditions. This substantial capital injection positions 89bio to advance its liver and cardiometabolic disease programs without immediate funding concerns, typically providing an 18-24 month runway for clinical-stage companies.

The size of this offering relative to 89bio's market cap indicates a transformative financing event that could accelerate their development timeline and potentially support multiple clinical programs simultaneously. For investors, while the offering creates dilution, the strengthened balance sheet reduces near-term financing risk and enhances the company's negotiating position for potential future partnerships or licensing deals.

SAN FRANCISCO, Feb. 03, 2025 (GLOBE NEWSWIRE) -- 89bio, Inc. (“89bio”) (Nasdaq: ETNB), a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of liver and cardiometabolic diseases, today announced that it closed its previously announced underwritten public offering of 25,957,142 shares of its common stock, including the full exercise by the underwriters of their option to purchase an additional 4,285,714 shares, at a public offering price of $8.75 per share, and, in lieu of common stock to certain investors, pre-funded warrants to purchase up to 6,900,000 shares of its common stock, at a purchase price of $8.749 per pre-funded warrant, which equals the public offering price per share of the common stock less the $0.001 exercise price per share of each pre-funded warrant. The gross proceeds of the offering to 89bio, before deducting underwriting discounts and commissions and other offering expenses payable by 89bio, were approximately $287.5 million.

Goldman Sachs & Co. LLC, Leerink Partners and BofA Securities acted as lead book-running managers and Cantor acted as book-running manager for the offering.

An automatically effective shelf registration statement relating to these securities was filed with the Securities and Exchange Commission (“SEC”) on May 23, 2023. The offering of the securities was made only by means of a prospectus, including a prospectus supplement, forming a part of an effective registration statement. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available on the SEC’s website, located at www.sec.gov, and may also be obtained by contacting: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; Leerink Partners, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com; or Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or by email at prospectus@cantor.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About 89bio

89bio is a clinical-stage biopharmaceutical company dedicated to the development of therapies for patients with liver and cardiometabolic diseases who lack optimal treatment options. The company is focused on advancing its lead candidate, pegozafermin, through Phase 3 clinical development for the treatment of metabolic dysfunction-associated steatohepatitis and severe hypertriglyceridemia. Pegozafermin is a specifically engineered fibroblast growth factor 21 analog with unique glycoPEGylated technology that optimizes biological activity through an extended half-life. The company is headquartered in San Francisco.

Investor Contact:
Annie Chang
89bio, Inc.
annie.chang@89bio.com

PJ Kelleher
LifeSci Advisors, LLC
+1 617-430-7579
pkelleher@lifesciadvisors.com

Media Contact:
Sheryl Seapy
Real Chemistry
sseapy@realchemistry.com

FAQ

How much did 89bio (ETNB) raise in its February 2025 public offering?

89bio raised approximately $287.5 million in gross proceeds through its public offering of common stock and pre-funded warrants.

What was the share price for ETNB's February 2025 public offering?

The public offering price was $8.75 per share of common stock, and $8.749 for pre-funded warrants.

How many shares did ETNB issue in its February 2025 offering?

89bio issued 25,957,142 shares of common stock, including 4,285,714 shares from the fully exercised underwriters' option.

What is the exercise price of ETNB's pre-funded warrants from the February 2025 offering?

The pre-funded warrants have an exercise price of $0.001 per share.

Which investment banks managed ETNB's February 2025 public offering?

Goldman Sachs & Co. , Leerink Partners, and BofA Securities acted as lead book-running managers, with Cantor as book-running manager.