89bio, Inc. recently released its 10-K report, detailing its financial performance and operations for the year ended December 31, 2023. The clinical-stage biopharmaceutical company, headquartered in San Francisco, California, focuses on developing and commercializing therapies for liver and cardio-metabolic diseases. Its lead product candidate is pegozafermin, a glycoPEGylated analog of fibroblast growth factor 21, intended for the treatment of nonalcoholic steatohepatitis (NASH) and severe hypertriglyceridemia (SHTG).
In the 10-K report, 89bio highlighted that it achieved a clinical development milestone in the fourth quarter of 2023 related to the enrollment of patients in its ENTRUST clinical trial for SHTG. The company made a $2.5 million milestone payment under the Teva Agreements. 89bio commenced operations in 2018 and has focused its resources on raising capital, acquiring its initial product candidate, identifying and developing pegozafermin, licensing related technology, conducting research and development activities, and providing general and administrative support for these activities.
The company reported a net loss of $142.2 million for the year ended December 31, 2023, compared to $102.0 million and $90.1 million for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2023, 89bio had an accumulated deficit of $457.4 million. The company expects to continue incurring significant expenses and increasing operating losses as it advances pegozafermin and any future product candidates through clinical trials, seeks regulatory approval, and expands its capabilities.
In terms of financial performance, the company's research and development expenses increased to $122.2 million in 2023 from $80.8 million in 2022, primarily due to an increase in contract manufacturing costs and personnel-related expenses. General and administrative expenses also increased to $29.0 million in 2023 from $21.5 million in 2022, primarily due to higher employee headcount and related benefit costs, including stock-based compensation expense. Interest expense rose to $4.8 million in 2023 from $1.9 million in 2022, primarily due to a loss upon extinguishment of the prior term loan and higher average debt balances and interest rates.
As of December 31, 2023, 89bio had cash, cash equivalents, and marketable securities of $578.9 million and had utilized various sources of liquidity, including at-the-market offerings, underwritten public offerings, and a term loan facility to fund its operations. The company stated that its primary use of cash is to fund operating expenses, primarily research and development expenditures related to its lead product candidate, pegozafermin. 89bio plans to increase its research and development expenses for the foreseeable future as it continues the clinical development of its current and future product candidates. The market reacted to these announcements by moving the company's shares 10.0% to a price of $12.62. If you want to know more, read the company's complete 10-K report here.
