89bio(ETNB) - 2020 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $11.8 million for the three months ended June 30, 2020, compared to a net loss of $15.0 million for the same period in 2019, representing a decrease of $3.2 million [99]. - The net loss for the six months ended June 30, 2020, was $22.3 million, compared to a net loss of $19.4 million for the same period in 2019, representing an increase in loss of $2.9 million [104]. - Net cash used in operating activities for the six months ended June 30, 2020, was $19.3 million, compared to $8.1 million for the same period in 2019 [119]. - The company has an accumulated deficit of $95.9 million as of June 30, 2020, and expects to continue incurring significant expenses as it advances its product candidates [86]. Research and Development - Research and development expenses increased by $5.3 million, or 167%, to $8.4 million for the three months ended June 30, 2020, from $3.1 million for the same period in 2019 [100]. - Research and development expenses rose by $8.7 million, or 117%, to $16.2 million for the six months ended June 30, 2020, compared to $7.5 million for the same period in 2019 [105]. - The company plans to increase research and development expenses significantly for the foreseeable future as it continues clinical development [112]. - The company expects to report topline data from its Phase 1b/2a clinical trial in NASH patients in late Q3 to early Q4 2020 [79]. - The company plans to initiate a Phase 2 trial in patients with severe hypertriglyceridemia (SHTG) in Q3 2020, pending a conducive environment due to COVID-19 [80]. - The ongoing COVID-19 pandemic has caused disruptions to clinical trials, including the enrollment of 81 patients in the Phase 1b/2a trial, which is 98% of the target [88]. Cash and Funding - As of June 30, 2020, the company had cash, cash equivalents, and short-term investments totaling $73.9 million, which, along with net proceeds from a July 2020 offering, is expected to meet cash requirements through the second quarter of 2022 [84]. - The company raised approximately $78.3 million in net proceeds from a public offering completed on July 10, 2020 [83]. - The company completed a public offering of 3,047,040 shares at a price of $27.50 per share, receiving gross proceeds of $83.8 million [111]. - The company anticipates that existing cash and net proceeds from the July 2020 offering will be sufficient to fund operations through the second quarter of 2022 [113]. Operating Expenses - The company incurred total operating expenses of $11.7 million for the three months ended June 30, 2020, compared to $4.0 million for the same period in 2019, an increase of $7.7 million [99]. - General and administrative expenses increased by $4.8 million, or 354%, to $6.2 million for the six months ended June 30, 2020, from $1.4 million for the same period in 2019 [106]. - The company expects to continue generating substantial operating losses as it expands research and development activities [116]. - Other expenses (income), net decreased by $10.6 million to $(59,000) for the six months ended June 30, 2020, from $10.5 million for the same period in 2019 [107].