FibroGen’s Strategic Moves and Financial Outlook: Hold Rating Amid Uncertainties
William Blair analyst Andy Hsieh has maintained a Hold rating on FibroGen (FGEN) stock due to uncertainties surrounding the company's financial status and strategic developments. Following the sale of FibroGen China to AstraZeneca, the company has cash reserves of $121.1 million, expected to last until 2028, although costs for a Phase III study may shorten this to 2027. Ongoing trials and their outcomes remain uncertain, contributing to the cautious outlook. Another report also reiterated a Hold rating with an $11.00 price target.
William Blair analyst Andy Hsieh has reiterated their neutral stance on FGEN stock, giving a Hold rating on October 28.
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Andy Hsieh has given his Hold rating due to a combination of factors surrounding FibroGen’s current financial status and strategic developments. The company has recently completed the sale of FibroGen China to AstraZeneca, which has bolstered its cash reserves to $121.1 million. This financial position is expected to support operations until 2028, but the anticipated costs of a Phase III study for low-risk MDS could shorten this runway to the second half of 2027.
Additionally, FibroGen is in the process of submitting a pivotal trial protocol for roxadustat, which reflects ongoing progress in their drug development pipeline. However, the outcomes of their FG-3246 trials, including a combination study with Xtandi and a monotherapy study, are still pending and will not be available until 2026. These uncertainties, coupled with the financial implications of their planned studies, contribute to the Hold rating as investors await further clarity on the company’s future performance and strategic direction.
Hsieh covers the Healthcare sector, focusing on stocks such as Skye Bioscience, Terns Pharmaceuticals, and Viking Therapeutics. According to TipRanks, Hsieh has an average return of 8.2% and a 45.81% success rate on recommended stocks.
In another report released on October 28, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $11.00 price target.
