FibroGen downgraded to Hold from Buy at Stifel

Stifel analyst Annabel Samimy downgraded FibroGen to Hold from Buy with a price target of $11, down from $28. Though the firm had “cautiously positive inclinations” for pamrevlumab in IPF, the ZEPHYRUS-1 trial “thoroughly missed its primary endpoint, with no silver lining to any trial outcome” and FibroGen is terminating the program and the firm has “little confidence left” in the program. The firm now values FibroGen on roxadustat’s contribution, cash, and 5% odds of success for DMD, adding that it sees “a long road for shares to recapture value at this time” despite the fact that shares are trading “punitively below cash.”