89bio, Inc. reported significant financial changes in its quarterly filing for the period ending September 30, 2024. The company, focused on developing therapies for liver and cardio-metabolic diseases, experienced a notable decrease in total assets, which fell to $458.3 million from $596.3 million at the end of 2023. Current assets also declined sharply from $593.5 million to $456.2 million, primarily due to a drastic reduction in cash and cash equivalents, which plummeted from $316.2 million to $91.4 million.

The company’s total current liabilities increased to $39.1 million, up from $29.6 million, while stockholders’ equity decreased from $536.3 million to $378.1 million. The accumulated deficit grew significantly, reaching $706.2 million, compared to $457.4 million at the end of 2023.

In terms of operational performance, 89bio reported substantial increases in expenses. Research and development costs surged to $141.4 million for Q3 2024, compared to $31.4 million in Q3 2023. Total operating expenses for the quarter reached $151.9 million, up from $39.3 million in the prior year. This resulted in a loss from operations of $151.9 million, compared to a loss of $39.3 million in Q3 2023. The net loss for Q3 2024 was $149.1 million, significantly higher than the $34.7 million loss reported in Q3 2023.

For the nine months ended September 30, 2024, the net loss totaled $248.7 million, compared to $102.0 million for the same period in 2023. The increase in losses was attributed to heightened research and development expenses, particularly related to the lead product candidate, pegozafermin, which is in advanced clinical trials.

Strategically, 89bio entered into a collaboration agreement with BiBo Biopharma Engineering Co., Ltd. in April 2024 for the construction of a production facility in Shanghai, with total payments expected to reach $135 million. The company has already paid $81 million towards this facility as of September 30, 2024. Additionally, 89bio amended its Loan Agreement in September 2024, increasing the maximum principal amount to $150 million, with a first tranche of $70 million.

The company continues to rely on external financing, having raised $21 million through the sale of shares under its 2023 ATM Facility and generating $54.2 million from the exercise of warrants during the nine months ended September 30, 2024. Despite these efforts, 89bio anticipates ongoing substantial operating losses as it progresses with its clinical development activities.