89Bio Stock Skyrockets After Roche's $3.5B Buyout Offer: Retail Bullish, But A Wall Street Analyst Is Cautious

Wolfe Research's Andy Chen cut his rating on 89bio to 'Peer Perform' from 'Outperform' and did not assign a price target after the biotech firm agreed to a $3.5 billion takeover by Roche. 

89bio's stock surged 85% on Thursday to end at $14.96, its best day on record and the highest level in about a year and a half, before easing 0.03% in after-hours trading.

Roche is paying $14.50 a share in cash for 89bio, about 79% above where the stock closed on Wednesday. Investors will also get the chance at another $6 a share in cash if certain milestones are met, though those rights won't be tradable. 

On a fully diluted basis, the transaction values 89bio at up to $3.5 billion. An affiliate of Roche will launch a tender offer to acquire all outstanding shares, with closing expected in the fourth quarter, subject to customary conditions. Until then, 89bio will continue to operate independently before joining Roche's pharmaceuticals division.

The acquisition brings Roche 89bio's late-stage drug candidate Pegozafermin, which is being developed for the treatment of metabolic dysfunction-associated steatohepatitis (MASH) with advanced fibrosis. MASH is a progressive liver disease characterized by fat accumulation leading to inflammation and tissue damage.

According to Koyfin, 89bio's stock has an average 12-month analyst price target of $30.8, with estimates ranging from $12 to $55. The company is covered by 10 analysts, with seven 'Buy' ratings, two 'Hold,' and no 'Sell.' The average rating is 'Buy.' 

On Stocktwits, retail sentiment around 89bio was described as 'extremely bullish' with 'extremely high' message volume, while sentiment on Roche was 'bullish' with 'normal' activity.

One user noted that Roche's purchase of 89bio could be part of a broader strategic shopping spree, adding that Sarepta Therapeutics might be next, given the two companies' long-standing partnership. The user also suggested that Amgen or Pfizer could make competing offers and stated that they planned to hold their position and watch developments.

Another user wondered whether Tempest Therapeutics might be a possible target for Roche following the 89bio deal.

While 89bio's stock has risen 91% so far in 2025, Roche's stock has climbed 21% over the same period.

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