Fibrogen (FGEN) Announces Fourth Quarter And Full Year 2024 Financial Earnings Results

FibroGen, Inc. (FGEN) today announced its financial results for the latest quarter, showcasing a mixed performance. The company reported an earnings per share (EPS) of $0.18, significantly surpassing the estimated EPS of -$0.14, marking a positive surprise of $0.32. However, FibroGen’s revenue fell short of expectations, coming in at $3.136 million compared to the anticipated $24.9 million, resulting in a revenue miss of $21.764 million. Despite the revenue shortfall, the EPS beat highlights a noteworthy aspect of the company’s financial performance this quarter.

Key Highlights:

• FibroGen announced the sale of FibroGen China to AstraZeneca for approximately $160 million, expected to close by mid-2025.
• The company plans to initiate a Phase 2 monotherapy trial of FG-3246, a potential first-in-class ADC targeting CD46 in metastatic castration-resistant prostate cancer (mCRPC), by mid-2025.
• FibroGen’s cash runway is expected to extend into 2027 upon the closing of the FibroGen China sale.
• The company reported a net loss from continuing operations of $153.1 million for the full year 2024, a significant improvement from the $323.0 million loss in 2023.
• FibroGen maintains rights to roxadustat in the U.S. and other markets outside of China, South Korea, and those licensed to Astellas.

Summary:

FibroGen, Inc. has announced significant strategic moves and financial results for the fourth quarter and full year 2024. A key development is the sale of FibroGen China to AstraZeneca for approximately $160 million, which is expected to close by mid-2025. This transaction is anticipated to strengthen FibroGen’s financial position, extending its cash runway into 2027. The company is also focusing on its core business areas, including the initiation of a Phase 2 monotherapy trial for FG-3246, a promising ADC targeting CD46 in metastatic castration-resistant prostate cancer, expected by mid-2025. CEO Thane Wettig expressed optimism about the company’s future, highlighting the potential value-creating milestones ahead.

Financially, FibroGen reported a net loss from continuing operations of $153.1 million for 2024, a marked improvement from the $323.0 million loss in 2023. The company continues to hold rights to roxadustat in the U.S. and other markets, excluding China, South Korea, and those licensed to Astellas. This strategic focus, along with the cost reduction plan and the anticipated sale of FibroGen China, positions the company to be leaner and more focused, with a stronger financial outlook. The management team is set to discuss these developments further in a conference call and webcast presentation.

FibroGen, Inc. (FGEN) has experienced a rollercoaster of price changes over the past year, with a staggering 78.98% decline in its stock price, reflecting significant challenges. Despite a recent one-week surge of 18.47%, the stock has seen a tumultuous one-month drop of 20.78%, indicating volatility and investor uncertainty. Over the past three months, however, the stock has rebounded by 31.96%, suggesting some regained confidence or positive developments. Fundamentally, the company faces hurdles, as evidenced by a negative price-to-earnings ratio of -0.35, highlighting ongoing losses. The net profit margin of -83.42% further underscores the financial struggles, with the company not yet achieving profitability. However, FibroGen’s revenue has shown promise with a two-year compound annual growth rate of 21.02%, suggesting potential for future growth if profitability can be achieved. The negative return on invested capital of -3.52% indicates inefficiencies in generating returns from investments, a critical area for improvement. Overall, while FibroGen shows some growth potential, its financial metrics reveal significant challenges that need addressing to stabilize and enhance investor confidence.

FibroGen, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapeutics to treat serious unmet medical needs. The company is developing Roxadustat, an oral small molecule inhibitor of hypoxia inducible factor prolyl hydroxylases, which has completed Phase III clinical development for the treatment of anemia in chronic kidney disease in the United States, Europe, China, and Japan; and in Phase II/III development in China for anemia associated with myelodysplastic syndromes. It is also developing Pamrevlumab, a human monoclonal antibody that inhibits the activity of connective tissue growth factor that is in Phase III clinical development for the treatment of idiopathic pulmonary fibrosis, pancreatic cancer, liver fibrosis, and diabetic kidney disease, as well as Phase III trial for the treatment of Duchenne muscular dystrophy. The company has collaboration agreements with Astellas Pharma Inc. and AstraZeneca AB. FibroGen, Inc. was incorporated in 1993 and is headquartered in San Francisco, California.