89bio Inc (NASDAQ:ETNB), a Phase 1 biotechnology company developing therapies for non-alcoholic steatohepatitis (NASH), is back this week after a false start.
Last week, the company opted to postpone its $70 million IPO after an administrative issue arose between its auditor and the SEC.
The San Francisco company plans to offer 4.4 million shares at between $15 and $17 per share.
NASH represents a multi-billion market
89bio’s company’s lead product candidate, BIO89-100, is an engineered analog of fibroblast growth factor 21, which functions as an endocrine hormone-regulating carbohydrate and lipid metabolism.
With no FDA-approved therapy, treatment for NASH represents a multi-billion dollar market, but 89bio is far from the only horse in the race.
Akero Therapeutics Inc (NASDAQ:AKRO) and NGM Biopharmaceuticals Inc (NASDAQ:NGM) went public this year in June and April, respectively. Akero is up about 24% overall, and NGM has dipped more than 20%
NASH biotechs to go public since 2014 have averaged 1% return on their first day of trading and -25% return overall, according to research firm Renaissance Capital.
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