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Investing.com - H.C. Wainwright has reiterated a Buy rating and $43.00 price target on FibroGen (NASDAQ:FGEN) following the company’s completed sale of its China subsidiary to AstraZeneca. According to InvestingPro data, FGEN’s stock has shown strong momentum with a 28% gain over the past six months, though the company currently appears overvalued based on Fair Value analysis.
FibroGen announced on September 2 that it completed the sale of FibroGen China to AstraZeneca for approximately $220 million, consisting of $85 million in enterprise value and approximately $135 million in net cash held in China. The total amount is $60 million more than initially guided.
Upon closing the transaction, FibroGen repaid its term loan facility to investment funds managed by Morgan Stanley Tactical Value for approximately $81 million, which simplifies the company’s balance sheet and is expected to extend its cash runway into 2028.
FibroGen maintains rights to roxadustat in the United States and in all markets not licensed to Astellas. Following a positive meeting with the FDA, the company plans to file a pivotal Phase 3 clinical trial protocol for roxadustat for treating anemia in patients with LR-MDS and high transfusion burden in the fourth quarter of 2025.
The additional capital from the China subsidiary sale provides FibroGen with flexibility to advance clinical programs for FG-3246 and roxadustat without interruption through important clinical milestones.
In other recent news, FibroGen Inc. reported its second-quarter earnings for 2025, revealing a significant miss in both earnings and revenue. The company posted an earnings per share (EPS) of -$1.88, which fell short of the analyst forecast of -$0.09. Revenue also disappointed, coming in at $1.3 million compared to the expected $2.88 million. Additionally, FibroGen announced that China’s State Administration for Market Regulation has approved the sale of FibroGen International (Hong Kong) Ltd. to AstraZeneca Treasury Limited. The transaction is expected to close in the third quarter of this year, pending other contractual conditions. These developments highlight ongoing challenges for FibroGen as it navigates financial hurdles and strategic shifts. While the earnings miss may concern investors, the approved sale could signify a strategic realignment for the company. These recent updates offer a glimpse into the current state of FibroGen’s business operations.
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