Backed by OrbiMed and Longitude, Phase 1 biotech 89bio (ETNB) is expected to raise $70 million tonight in the fifth NASH-focused biotech IPO of 2019; insiders have indicated on $40 million (57% of the deal). Another NASH biotech, Cirius Therapeutics (CSTX), is in the IPO pipeline, but before this year, the last biotech IPO targeting NASH came in 2015. While the most recent NASH biotech IPO has outperformed, the year’s other three are well below issue, along with the two deals from 2014/2015.
Nonalcoholic steatohepatitis (NASH) is a progressive form of nonalcoholic fatty liver disease (NAFLD) with no FDA-approved therapies. The disease has proven difficult to treat, but with a multi-billion-dollar market, many competitors are racing for FDA approval. Intercept Pharmaceuticals (ICPT; 2012 IPO) appears in the lead, having recently submitted an NDA for obeticholic acid as a therapy for fibrosis due to NASH.
89bio’s lead candidate is an analog of fibroblast growth factor 21 (FGF21) and is currently in a Phase 1b/2a trial in patients with NAFLD and a high risk of NASH. There are a number of NASH/NAFLD therapies in development, including other FGF21 therapies from newly-public companies Akero Therapeutics (AKRO) and NGM Biopharmaceuticals (NGM). Led by the former CMO of Gilead, Phase 2 biotech Akero Therapeutics has performed the best out of its NASH peers, up 37% from its June IPO. The other NASH biotechs, all of which are Phase 2/3, trade below issue; NASH-focused biotechs that have IPO'd since 2014 average a 1% first-day return and a -25% return from IPO.
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| 89bio is the 5th NASH Biotech of 2019 and the 7th since 2014 | |||||
|---|---|---|---|---|---|
| Company Phase |
Offer Date | IPO Deal Size IPO Market Cap |
First Day Return |
Total Return |
Shareholders |
| 89bio (ENTB) Phase 1 |
11/06/19 | $70M $210M |
- | - | OrbiMed Longitude Capital |
| Akero Therapeutics (AKRO) Phase 2 |
06/19/19 | $92M $471M |
+15% | +37% | Apple Tree Partners Atlas Ventures |
| Axcella Health (AXLA) Phase 3 |
05/08/19 | $71M $519M |
-31% | -75% | Flagship Pioneering Fidelity Investments |
| NGM Biopharmaceuticals (NGM) Phase 2 |
04/03/19 | $107M $1,146M |
-8% | -23% | The Column Group Merck |
| Genfit (GNFT) Phase 3 |
03/26/19 | $135M $770M |
+9% | -28% | Avenir Susquehanna |
| Viking Therapeutics (VKTX) Phase 2 |
04/28/15 | $24M $73M |
+12% | -18% | Ligand Pharma Co-founder/CEO |
| Galmed Pharmaceuticals (GLMD) Phase 3 |
03/12/14 | $38M $154M |
+6% | -42% | CEO Chairman |
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