Shares of 89Bio, Inc. (ETNB) plunged 5.65% in pre-market trading on Friday following the release of disappointing second-quarter earnings results and a subsequent price target reduction by RBC Capital.

The biotechnology company reported a quarterly adjusted loss of 71 cents per share for the quarter ended June 30, significantly wider than the mean expectation of 49 cents per share loss from nine analysts. This result also represents a deterioration from the 48 cents per share loss reported in the same quarter last year. The company's quarterly loss amounted to $111.5 million, with zero revenue reported, matching analysts' expectations.

Adding to the bearish sentiment, RBC Capital analyst Brian Abrahams maintained a Hold rating on 89bio but lowered the price target from $12 to $11. This adjustment reflects concerns about the company's financial performance and near-term prospects. Despite the setback, it's worth noting that the average analyst rating on 89Bio remains a "buy," with a median 12-month price target of $28.00, representing a potential 67.8% upside from its last closing price. However, investors appear to be focusing on the immediate challenges facing the company, leading to the sharp decline in share price.