Analyst Matthew Keller from H.C. Wainwright reiterated a Buy rating on FibroGen and keeping the price target at $43.00.
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Matthew Keller’s rating is based on a combination of strategic advancements and financial maneuvers by FibroGen. The initiation of the FG-3246 Phase 2 monotherapy trial marks a significant step in evaluating its potential for treating mCRPC, especially after promising results from a previous Phase 1 trial. This trial aims to determine the optimal dosage and further assess the drug’s efficacy and safety, which could solidify its clinical potential and guide future regulatory strategies.
Additionally, the recent sale of FibroGen China to AstraZeneca has strengthened the company’s financial position by adding approximately $220 million, exceeding initial expectations. This influx of capital not only simplifies FibroGen’s balance sheet but also extends its cash runway into 2028. Such financial stability is expected to support the uninterrupted progression of FG-3246 and roxadustat’s clinical programs, enhancing the company’s ability to reach critical milestones. Keller’s valuation also considers the potential future sales of roxadustat and the strategic opportunities for further partnerships and market expansions.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FGEN in relation to earlier this year.