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FibroGen Reports First Quarter 2024 Financial Results

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FibroGen, Inc. (NASDAQ: FGEN) reported strong financial results for Q1 2024, showing a 55% year-over-year net revenue growth driven by roxadustat sales in China and one-time revenue from the termination of the US/RoW AstraZeneca agreement. The company has a healthy cash balance of $214.7 million, ensuring financial stability till 2026.

Positive
  • 55% year-over-year net revenue growth in Q1 2024.

  • Robust roxadustat sales in China with a 39% volume growth.

  • $214.7 million cash balance ensuring financial stability till 2026.

  • Compelling Phase 1 data on FG-3246 in metastatic castration-resistant prostate cancer.

  • Expected topline data from late-stage clinical trials of pamrevlumab in pancreatic cancer in mid-2024 and 3Q 2024.

Negative
  • Net loss of $32.9 million in Q1 2024.

  • 25.7 million one-time revenue due to the termination of the US/RoW AstraZeneca agreement.

  • Expected approval decision for roxadustat in chemotherapy-induced anemia (CIA) in China in the second half of 2024.

FibroGen's financial performance in the first quarter of 2024 shows a substantial year-over-year net revenue growth of 55%, primarily fueled by roxadustat's strong performance in the Chinese market. The impressive 39% volume growth in China indicates a solid demand for the drug. With a net loss reduction from $76.7 million to $32.9 million year over year, it is evident that the company's profitability is heading in a positive direction. The one-time drug product revenue from the AstraZeneca agreement termination added a significant boost to this quarter's revenue, but investors should be mindful that this is non-recurring and consider its impact on future revenue streams. The company's cash runway into 2026 provides enough liquidity cushion, signalling reduced short-term financial risk. However, investors should monitor the progress of clinical trials, particularly the topline data from the PanCAN Precision PromiseSM Phase 2/3 study, as successful outcomes could have a significant impact on the stock's performance.

The advancement of FibroGen's oncology pipeline, particularly the FG-3246, showcases the company's commitment to addressing metastatic castration-resistant prostate cancer (mCRPC), a condition with limited treatment options. The Phase 1 data showing a median rPFS of 8.7 months is encouraging when considering the aggressiveness of mCRPC. Moreover, a 20% partial response rate signals potential efficacy, which could lead to considerable market opportunities if subsequent phases of clinical trials are successful. The anticipation of an IND filing for FG-3175 also reflects a robust pipeline strategy. The retail investor should be aware that oncology drug development carries significant risk and timelines, but successful progression through clinical trials could lead to substantial rewards, given the high unmet medical needs in oncology.
  • Topline data from the Pancreatic Cancer Action Network (PanCAN) Precision PromiseSM Phase 2/3 study in metastatic pancreatic cancer anticipated in mid-2024

  • Topline data from LAPIS Phase 3 study in locally advanced unresectable pancreatic cancer anticipated in 3Q 2024

  • Reported compelling data from Phase 1 monotherapy study of FG-3246, a CD46 targeted antibody drug conjugate, in metastatic castration-resistant prostate cancer

  • First quarter net revenue growth of 55% year over year, driven by roxadustat China performance and one-time drug product revenue recognized from US/RoW AstraZeneca agreement termination

  • Robust year over year roxadustat volume growth of 39% in China

  • Cash, cash equivalents, investments, and accounts receivable balance of $214.7 million; cash runway projected into 2026

SAN FRANCISCO, May 06, 2024 (GLOBE NEWSWIRE) -- FibroGen, Inc. (NASDAQ: FGEN) today reported financial results for the first quarter 2024 and provided an update on the company’s recent developments.

“We are off to a strong start in 2024 marked by the recent release of compelling Phase 1 data on FG-3246, our CD46 targeted antibody drug conjugate, in metastatic castration-resistant prostate cancer and continued robust growth of our roxadustat business in China,” said Thane Wettig, Chief Executive Officer, FibroGen. “Looking ahead, we expect to report topline data from our two late-stage clinical trials of pamrevlumab in pancreatic cancer in the coming months. In addition, we have a strong balance sheet and reaffirm our cash runway into 2026.”

Upcoming Milestones:

Pamrevlumab

  • Topline data from the PanCAN Precision PromiseSM Phase 2/3 study of pamrevlumab in metastatic pancreatic cancer expected in mid-2024, reflecting PanCAN’s updated timing to complete database lock and subsequent analysis of the topline results by the independent Statistical Monitoring Committee.
  • Topline data from the LAPIS Phase 3 study of pamrevlumab in locally advanced unresectable pancreatic cancer (LAPC) expected in 3Q 2024, due to the current trend in reported blinded overall survival events needed to complete the study.

Roxadustat

  • Expect approval decision for roxadustat in chemotherapy-induced anemia (CIA) in China in the second half of 2024. If approved, FibroGen will receive a $10 million milestone payment from AstraZeneca.

Oncology Pipeline

  • Initial data from Phase 1 investigator-initiated combination study of FG-3246 with enzalutamide in metastatic castration-resistant prostate cancer (mCRPC) to be presented at ASCO 2024.
  • Anticipate initiation of Phase 2 monotherapy dose optimization study of FG-3246 in mCRPC in 2H 2024.
  • Anticipate filing of an IND for FG-3175 (anti-CCR8 mAb) in 2025.

Recent Developments:

Oncology Pipeline

  • Additional data from a total of 56 biomarker unselected and heavily pre-treated patients in a Phase 1 monotherapy study of FG-3246 in mCRPC reported.
    • Efficacy analysis (includes adenocarcinoma patients receiving doses ≥ 1.2 mg/kg):
      • The median radiographic progression free survival (rPFS) in this patient population was 8.7 months.
      • For RECIST evaluable patients, 20% met the criteria of a partial response, or measurable tumor reduction in size of ≥ 30%, with a median duration of response of 7.5 months.
      • PSA reductions of ≥ 50% were observed in 36% of PSA evaluable patients.
    • Safety analysis:
      • The most frequent adverse events were consistent with other MMAE-based antibody drug conjugates and included infusion-related reactions, fatigue, weight loss, neutropenia, and peripheral neuropathy.
  • IND submitted for FG-3165 (Galectin-9 targeting mAb) for solid tumors in April 2024.

Corporate

  • Appointed Deyaa Adib, MD as Chief Medical Officer.

China:

  • First quarter FibroGen net product revenue under U.S. GAAP from the sale of roxadustat in China was $30.5 million compared to $24.2 million in the first quarter of 2023, an increase of 26% year over year.
  • First quarter total roxadustat net sales in China1 by FibroGen and the distribution entity jointly owned by FibroGen and AstraZeneca (JDE) was $79.4 million, compared to $64.1 million in the first quarter of 2023, an increase of 24% year over year, driven by a 39% increase in volume.
  • Roxadustat continues to be the number one brand based on value share in the anemia of CKD market in China.
  • For 2024, we reiterate FibroGen’s full year net product revenue under U.S. GAAP to range between $120 million to $135 million, representing full year roxadustat net sales in China1 by FibroGen and the JDE to range between $300 million to $340 million.

Financial:

  • Total revenue for the first quarter of 2024 was $55.9 million, as compared to $36.2 million for the first quarter of 2023, an increase of 55% year over year. Total revenue increase was driven by net product revenue in China and one-time drug product revenue of $25.7 million recognized due to the termination of US/RoW AstraZeneca agreement.
  • Net loss for the first quarter of 2024 was $32.9 million, or $0.33 net loss per basic and diluted share, compared to a net loss of $76.7 million, or $0.81 net loss per basic and diluted share one year ago.
  • At March 31, 2024, FibroGen reported $214.7 million in cash - defined as cash, cash equivalents, investments, and accounts receivable.
  • We expect our cash, cash equivalents, investments, and accounts receivable to be sufficient to fund our operating plans into 2026.

Conference Call and Webcast Details
FibroGen will host a conference call and webcast today, Monday, May 6, 2024, at 5:00 PM Eastern Time to discuss financial results and provide a business update. Interested parties may access a live audio webcast of the conference call via the “Investor Relations” page of the Company’s website at www.fibrogen.com. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at the following link (webcast replay).

About Pamrevlumab
Pamrevlumab is a potential first-in-class antibody being developed by FibroGen to inhibit the activity of connective tissue growth factor (CTGF). Pamrevlumab is in Phase 3 clinical development for the treatment of locally advanced unresectable pancreatic cancer (LAPC) and in Phase 2/3 for the treatment of metastatic pancreatic cancer. The U.S. Food and Drug Administration has granted Orphan Drug Designation, and Fast Track designation to pamrevlumab for the treatment of patients with LAPC. Pamrevlumab has demonstrated a safety and tolerability profile that has supported ongoing clinical investigation in LAPC and metastatic pancreatic cancer. Pamrevlumab is an investigational drug and not approved for marketing by any regulatory authority. For information about our pamrevlumab studies please visit www.clinicaltrials.gov.

About Roxadustat
Roxadustat, an oral medication, is the first in a new class of medicines comprising HIF-PH inhibitors that promote erythropoiesis, or red blood cell production, through increased endogenous production of erythropoietin, improved iron absorption and mobilization, and downregulation of hepcidin. Roxadustat is in clinical development for chemotherapy-induced anemia (CIA) and a Supplemental New Drug Application (sNDA) has been accepted by the China Health Authority.

Roxadustat is approved in China, Europe, Japan, and numerous other countries for the treatment of anemia of CKD in adult patients on dialysis (DD) and not on dialysis (NDD). Several other licensing applications for roxadustat have been submitted by partners, Astellas and AstraZeneca, to regulatory authorities across the globe, and are currently under review. Astellas and FibroGen are collaborating on the development and commercialization of roxadustat for the potential treatment of anemia in territories including Japan, Europe, Turkey, Russia, and the Commonwealth of Independent States, the Middle East, and South Africa. AstraZeneca and FibroGen continue to collaborate on the development and commercialization of roxadustat in China.

About FibroGen
FibroGen, Inc. is a biopharmaceutical company focused on accelerating the development of novel therapies at the frontiers of cancer biology. Pamrevlumab, a fully human anti-CTGF monoclonal antibody, is in clinical development for the treatment of metastatic pancreatic cancer and locally advanced unresectable pancreatic cancer (LAPC). Roxadustat (爱瑞卓®, EVRENZO™) is currently approved in China, Europe, Japan, and numerous other countries for the treatment of anemia in chronic kidney disease (CKD) patients on dialysis and not on dialysis. Roxadustat is in clinical development for chemotherapy-induced anemia (CIA) and a Supplemental New Drug Application (sNDA) has been accepted for review by the China Health Authority. FG-3246 (also known as FOR46), a first-in-class antibody-drug conjugate (ADC) targeting CD46 is in development for the treatment of metastatic castration-resistant prostate cancer. This program also includes the development of an associated CD46-targeted PET biomarker. In addition, FibroGen has expanded its research and development portfolio to include two immuno-oncology product candidates for the treatment of solid tumors. For more information, please visit www.fibrogen.com.

Forward-Looking Statements
This release contains forward-looking statements regarding FibroGen’s strategy, future plans and prospects, including statements regarding its clinical programs and those of its collaboration partners Fortis, UCSF, and the Pancreatic Cancer Action Network. These forward-looking statements include, but are not limited to, statements regarding the efficacy, safety, and potential success of FibroGen product candidates, and statements about FibroGen’s plans and objectives and typically are identified by use of terms such as “may,” “will”, “should,” “on track,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. FibroGen’s actual results may differ materially from those indicated in these forward-looking statements due to risks and uncertainties related to the continued progress and timing of its various programs, including the enrollment and results from ongoing and potential future clinical trials, and other matters that are described in FibroGen’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the Securities and Exchange Commission (SEC), including the risk factors set forth therein. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and FibroGen undertakes no obligation to update any forward-looking statement in this press release, except as required by law.

___________________
1 Total roxadustat net sales in China includes sales made by the distribution entity as well as FibroGen China’s direct sales, each to its own distributors. The distribution entity jointly owned by AstraZeneca and FibroGen is not consolidated into FibroGen’s financial statements.

      
      
Condensed Consolidated Balance Sheets
(In thousands)
      
 March 31, 2024  December 31, 2023 
 (Unaudited)  (1) 
Assets     
Current assets:     
Cash and cash equivalents$105,734  $113,688 
Short-term investments 71,865   121,898 
Accounts receivable, net 37,083   12,553 
Inventory 27,335   41,565 
Prepaid expenses and other current assets 36,150   41,855 
Total current assets 278,167   331,559 
      
Restricted time deposits 1,658   1,658 
Property and equipment, net 12,166   13,126 
Equity method investment in unconsolidated variable interest entity 5,776   5,290 
Operating lease right-of-use assets 64,751   68,093 
Other assets 3,350   3,803 
Total assets$365,868  $423,529 
      
Liabilities, stockholders’ equity and non-controlling interests     
Current liabilities:     
Accounts payable$4,353  $17,960 
Accrued and other liabilities 164,286   172,891 
Deferred revenue 12,863   12,740 
Operating lease liabilities, current 15,231   14,077 
Total current liabilities 196,733   217,668 
      
Product development obligations 17,446   17,763 
Deferred revenue, net of current 147,118   157,555 
Operating lease liabilities, non-current 62,511   66,537 
Senior secured term loan facilities, non-current 72,213   71,934 
Liability related to sale of future revenues, non-current 52,216   51,413 
Other long-term liabilities 3,786   2,858 
Total liabilities 552,023   585,728 
      
Redeemable non-controlling interests 21,480   21,480 
Total stockholders’ deficit attributable to FibroGen (228,122)  (204,166)
Nonredeemable non-controlling interests 20,487   20,487 
Total deficit (207,635)  (183,679)
Total liabilities, redeemable non-controlling interests and deficit$365,868  $423,529 
        
(1) The condensed consolidated balance sheet amounts at December 31, 2023 are derived from audited financial statements.




   
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
   
 Three Months Ended March 31, 
 2024  2023 
 (Unaudited) 
Revenue:     
License revenue$  $6,000 
Development and other revenue 878   3,891 
Product revenue, net 30,538   24,161 
Drug product revenue, net 24,486   2,109 
Total revenue 55,902   36,161 
      
Operating costs and expenses:     
Cost of goods sold 25,753   3,491 
Research and development 38,392   74,486 
Selling, general and administrative 22,820   34,275 
Total operating costs and expenses 86,965   112,252 
Loss from operations (31,063)  (76,091)
      
Interest and other, net:     
Interest expense (4,996)  (2,372)
Interest income and other income (expenses), net 2,570   1,036 
Total interest and other, net (2,426)  (1,336)
      
Loss before income taxes (33,489)  (77,427)
Provision for income taxes 33   74 
Investment income in unconsolidated variable interest entity 589   796 
Net loss$(32,933) $(76,705)
      
Net loss per share - basic and diluted$(0.33) $(0.81)
      
Weighted average number of common shares used to calculate net loss per share - basic and diluted 98,982   94,691 
        


Contacts:
FibroGen, Inc.

Investors:
David DeLucia, CFA
Vice President of Corporate FP&A / Investor Relations
ir@fibrogen.com

Media:
Meichiel Keenan
Director, Investor Relations and Corporate Communications
media@fibrogen.com


FAQ

When is the topline data from the LAPIS Phase 3 study of pamrevlumab in locally advanced unresectable pancreatic cancer expected?

Topline data is expected in 3Q 2024.

What was FibroGen's first quarter net revenue growth in 2024?

The net revenue growth was 55% year over year.

What is FibroGen's stock symbol?

FibroGen's stock symbol is FGEN.

What is the cash balance reported by FibroGen at the end of Q1 2024?

FibroGen reported a cash balance of $214.7 million.

What was the total revenue for FibroGen in the first quarter of 2024?

Total revenue was $55.9 million in Q1 2024.

What is the expected approval decision for roxadustat in China?

The approval decision is expected in the second half of 2024.

FibroGen, Inc.

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