Small biotech company 89bio (ETNB) scored a win Wednesday in fatty liver disease, and ETNB stock rocketed well above its 50-day moving average.
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The company tested a drug called pegozafermin in patients with nonalcoholic steatohepatitis, or NASH. In this disease, patients experience scarring of the liver known as fibrosis. In a midstage test, pegozafermin improved fibrosis at more than three times the rate of the placebo.
The results met 89bio’s goals and set the company up to compete with Akero Therapeutics (AKRO), which is testing a similar drug that requires more frequent injections.
In premarket trading on today’s stock market, ETNB stock soared 30.4% near 14.30. Akero stock, on the other hand, tumbled 6.1% near 35.
89bio shares have a best-possible Relative Strength Rating of 99, according to IBD Digital. This puts the stock’s 12-month performance in the top 1% of all stocks.
More to follow.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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