89bio falls as RBC downgrades to 'sector perform', cuts PT
** Shares of drug developer 89bio ETNB.O fall ~4% to $10.73 premarket
** Brokerage RBC Capital downgrades stock to "sector perform" from "outperform", cuts PT to $15 from $24
** Brokerage expects fewer trial results from co's experimental fatty liver drug pegozafermin
** ETNB is set to start multiple late-stage studies testing the drug this year to treat metabolic dysfunction-associated steatohepatitis (MASH), also known as nonalcoholic steatohepatitis (NASH)
** "Solid execution on these studies will be key, but we do not expect any significant clinical updates from these prior pegozafermin studies this year that would materially de-risk or change the fundamental story," says RBC
** Brokerage says upcoming data readouts from GLP-1 drugs from Eli Lilly's LLY.N tirzepatide and Boehringer Ingelheim's survodutide, which are being tested to potentially also treat fatty liver disease, "may still modestly impact the size of the NASH opportunity"
** Stock fell 12.2% in 2023
Reporting by Sneha S K
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