SCHEDULE 13D/A: RA Capital Management Boosts Stake in 89bio, Inc. to 15.1% Following Public Offering Participation

RA Capital Management, L.P. and its affiliates have increased their beneficial ownership in 89bio, Inc. to 15.1% of outstanding common stock after purchasing shares in the company's recent public offering.

Summary

• RA Capital Management, L.P., Peter Kolchinsky, Rajeev Shah, and RA Capital Healthcare Fund, L.P. (collectively, the "Reporting Persons") have filed Amendment No. 12 to their Schedule 13D.
• The Reporting Persons now beneficially own an aggregate of 20,013,733 shares of 89bio, Inc. Common Stock.
• This ownership represents 15.1% of 89bio, Inc.'s outstanding Common Stock, based on 132,083,480 shares outstanding as of February 3, 2025.
• The increase in ownership is primarily due to RA Capital Healthcare Fund, L.P.'s purchase of 5,714,285 shares of Common Stock on January 30, 2025.
• These shares were acquired at a price of $8.75 per share from the underwriters of 89bio, Inc.'s 2025 public offering, totaling an aggregate purchase price of $49,999,993.75.
• The purchase was funded by the working capital of RA Capital Healthcare Fund, L.P.
• The Reporting Persons' beneficial ownership also includes 335,364 shares held by RA Capital Nexus Fund, L.P., 124,050 vested stock options, and 4,331,081 pre-funded warrants (PFWs) which are currently not exercisable due to a 9.99% beneficial ownership blocker.

Sentiment

Score: 7

Explanation: The filing indicates a significant institutional investor, RA Capital Management, has increased its stake in 89bio, Inc. through participation in a public offering, which can be viewed as a vote of confidence. However, the document is purely factual regarding ownership changes and does not contain new operational or financial performance data, leading to a neutral to slightly positive sentiment.

Positives

• A significant institutional investor, RA Capital Management, has increased its stake, which may signal confidence in 89bio, Inc.'s future prospects.
• The participation in the public offering demonstrates continued investment and support from a major shareholder.

Risks

• The pre-funded warrants (PFWs) held by the Reporting Persons contain a "PFW Beneficial Ownership Blocker" which prevents their exercise if it would result in the Reporting Persons beneficially owning more than 9.99% of the Issuer's outstanding Common Stock, limiting immediate full conversion of these instruments.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: The increased stake by a prominent institutional investor like RA Capital Management could be perceived positively by other shareholders, potentially boosting investor confidence.

Key Dates

Keywords

89BIO, RA Capital Management, Schedule 13D, Beneficial Ownership, Common Stock, Public Offering, Investment, Healthcare Fund, Biotechnology, Institutional Investor