FibroGen’s Strategic Positioning and Financial Health: A Buy Rating Backed by Strong Cash Reserves and Promising Clinical Pipeline

Analyst Matthew Keller of H.C. Wainwright reiterated a Buy rating on FibroGen (FGEN – Research Report), retaining the price target of $10.00.

Matthew Keller has given his Buy rating due to a combination of factors that highlight FibroGen’s strategic positioning and financial health. The company has reported a strong cash position, with a consolidated cash balance of $128.4 million, which provides a cash runway extending to the second half of 2027. This financial stability is further bolstered by the anticipated closure of the FibroGen China sale to AstraZeneca, which is expected to bring in an additional $185 million, enhancing the company’s ability to fund its clinical programs without interruption.
Furthermore, FibroGen is making significant progress in its clinical development pipeline, particularly with FG-3246. The company is set to initiate a Phase 2 study for FG-3246 in metastatic castration-resistant prostate cancer (mCRPC) and report results from another study in combination with enzalutamide by the end of 2025. These developments represent critical milestones that could potentially drive the company’s growth. The strategic sale of FibroGen China not only strengthens the financial outlook but also allows FibroGen to focus on advancing its U.S. development programs, including the exploration of roxadustat for low-risk myelodysplastic syndromes (LR-MDS).

Keller covers the Healthcare sector, focusing on stocks such as FibroGen, Iterum Therapeutics, and GRI Bio. According to TipRanks, Keller has an average return of -26.5% and a 16.67% success rate on recommended stocks.