89bio, Inc. Announces Upsized Pricing of $125.0 Million Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

89bio announced the pricing of its upsized public offering, consisting of 11,455,882 shares of common stock at $8.50 per share and pre-funded warrants to purchase 3,250,000 shares at $8.499 per share. The pre-funded warrants have an exercise price of $0.001 and are immediately exercisable. The company granted underwriters a 30-day option to purchase up to 2,205,882 additional shares. The offering, expected to close around November 14, 2024, aims to raise approximately $125.0 million in gross proceeds. Goldman Sachs, Leerink Partners, and Evercore ISI are serving as book-running managers.

Positive

• Successful upsizing of public offering to raise $125.0 million in gross proceeds
• Immediate exercisability of pre-funded warrants

Negative

• Potential dilution of existing shareholders due to significant new share issuance
• Additional dilution possible if underwriters exercise their option for extra shares

Insights

Financial Analyst

This $125 million public offering represents a significant capital raise for 89bio, pricing 11.46M shares at $8.50 per share and 3.25M pre-funded warrants at $8.499. The pricing reflects a ~15% discount to recent trading levels, which is within typical ranges for biotech secondary offerings. The additional 2.21M share option for underwriters provides flexibility for strong demand.

The capital injection substantially strengthens 89bio's balance sheet, extending their runway for clinical development programs in liver and cardiometabolic diseases. With top-tier investment banks Goldman Sachs, Leerink and Evercore leading the offering, this indicates strong institutional interest. However, the dilution impact on existing shareholders is notable, representing approximately 20% of shares outstanding pre-offering.

SAN FRANCISCO, Nov. 12, 2024 (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 the pricing of its previously announced upsized underwritten public offering of 11,455,882 shares of its common stock at a public offering price per share of $8.50 and, in lieu of common stock to a certain investor, pre-funded warrants to purchase up to 3,250,000 shares of its common stock at a public offering price of $8.499. The pre-funded warrants have an exercise price of $0.001 per share and are exercisable immediately. In addition, 89bio has granted the underwriters of the offering an option for a period of 30 days to purchase up to an additional 2,205,882 shares of its common stock at the public offering price, less the underwriting discounts and commissions. The gross proceeds of the offering to 89bio, before deducting the underwriting discounts and commissions and other offering expenses payable by 89bio, are expected to be approximately $125.0 million. The offering is expected to close on or about November 14, 2024, subject to the satisfaction of customary closing conditions.

Goldman Sachs & Co. LLC, Leerink Partners and Evercore ISI are acting as book-running managers 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 is being made only by means of a prospectus, including a prospectus supplement, forming a part of an effective registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website, located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus related to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov and may also be obtained, when available, 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; or Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, by telephone at (888) 474-0200 or by email at ecm.prospectus@evercore.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 in Phase 3 clinical trials for its lead candidate, pegozafermin, for the treatment of metabolic dysfunction-associated steatohepatitis and severe hypertriglyceridemia. Pegozafermin is a specifically engineered, potentially best-in-class 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.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, 89bio’s expectations regarding the consummation of the offering and the satisfaction of customary closing conditions with respect to the offering. Words such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “anticipate,” “goal,” “opportunity,” “develop,” “plan” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward looking statements. While 89bio believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in 89bio’s filings with the SEC), many of which are beyond 89bio’s control and subject to change. Actual results could be materially different. Risks and uncertainties include: changes as a result of market conditions or for other reasons; the risk that the offering will not be consummated; the impact of general economic, health, industrial or political conditions in the United States or internationally; and other risks and uncertainties identified in 89bio’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other subsequent disclosure documents filed with the SEC. 89bio claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. 89bio expressly disclaims any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.

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) price its public offering for in November 2024?

89bio priced its public offering at $8.50 per share of common stock and $8.499 for pre-funded warrants, aiming to raise approximately $125.0 million in gross proceeds.

How many shares were offered in 89bio's (ETNB) November 2024 public offering?

The offering included 11,455,882 shares of common stock and pre-funded warrants to purchase 3,250,000 shares, with an additional option for underwriters to purchase up to 2,205,882 shares.

When is 89bio's (ETNB) November 2024 public offering expected to close?

The public offering is expected to close on or about November 14, 2024, subject to customary closing conditions.