FibroGen’s stock hit a new 52-week low, dropping 8% to $2.51 after the company announced that its Phase 3 trial of pamrevlumab in patients with idiopathic pulmonary fibrosis failed to achieve its primary endpoint. The safety and efficacy study compared treatment with pamrevlumab with a placebo and showed no significant change from baseline in forced vital capacity at week 48. The secondary endpoint of time to disease progression was not met. While the safety analysis found pamrevlumab to be generally safe and well-tolerated, the second Phase 3 clinical trial will be discontinued as a result of these findings.
FibroGen plans to implement a significant cost-reduction effort in the US to extend their cash runway into 2026. Analysts at Raymond James cut their rating of FibroGen to Market Perform from Outperform, while Goldman Sachs analysts lowered the price target for FibroGen shares to $2 from $16 a share, but maintained their Sell rating.
With FibroGen’s Phase 3 trial of pamrevlumab not meeting its primary endpoint, the biopharmaceutical company has experienced a significant drop in their stock’s value. Analysts suggest that the second Phase 3 clinical trial will be discontinued as a result of these findings. FibroGen looks to implement a cost-reduction effort to extend their cash runway.