FibroGen extends merger option deadline with Fortis

Published 28/03/2025, 22:24
FibroGen extends merger option deadline with Fortis

SAN FRANCISCO, CA – FibroGen, Inc. (NASDAQ:FGEN), a biopharmaceutical company currently valued at $33.1 million, announced today that it has amended agreements with Fortis (NYSE:FTS) Therapeutics, Inc., extending the option exercise deadline for a potential merger until December 31, 2027. According to InvestingPro data, the company faces significant challenges with rapid cash burn and declining revenues. The amendments pertain to the First Amended and Restated Evaluation Agreement and the First Amended and Restated Option Agreement and Plan of Merger, both originally dated May 5, 2023, and later amended on June 6, 2024.

The specific details of the amendments will be fully disclosed in FibroGen’s Quarterly Report on Form 10-Q for the quarter ending March 31, 2025, as stated in the SEC filing. These strategic amendments provide both entities with an extended period to evaluate the potential merger, ensuring thorough due diligence and strategic planning before any final decision is made.

FibroGen, headquartered at 350 Bay Street, San Francisco, is incorporated in Delaware and operates within the pharmaceutical preparations industry under the SIC code 2834. The company’s common stock is traded on the Nasdaq Global Select Market under the ticker symbol FGEN. InvestingPro analysis shows the stock has declined 86% over the past year, though current valuations suggest potential upside. InvestingPro subscribers have access to 11 additional key insights about FGEN’s financial health and market position.

This announcement follows the company’s entry into a material definitive agreement, filed with the Securities and Exchange Commission on March 28, 2025. The extension reflects the ongoing collaboration between FibroGen and Fortis Therapeutics and underscores the importance of the potential merger in the companies’ future strategies.

Investors and stakeholders are advised to await the forthcoming quarterly report, expected on May 12, 2025, for a comprehensive understanding of the amendments’ terms. The information in this article is based on a press release statement and aims to provide a factual summary of the recent developments without speculation on the implications or future outcomes of the agreement. For detailed financial analysis and expert insights, access the complete FibroGen research report on InvestingPro, featuring comprehensive valuation metrics and growth prospects.

In other recent news, FibroGen reported a significant earnings surprise for the fourth quarter of 2024, with earnings per share (EPS) reaching $0.18, surpassing the forecasted -$0.17. However, the company faced a decline in revenue, recording $3.1 million in Q4 2024, down from $3.6 million in the previous year. For the full year, revenue dropped to $29.6 million from $46.8 million in 2023. Despite the earnings beat, the company continues to face challenges in generating sales, highlighting ongoing revenue difficulties. In other developments, FibroGen announced promising results from a Phase 1 trial of FG-3246 for metastatic castration-resistant prostate cancer, showing a 20% objective response rate and a median progression-free survival of 8.7 months. The company plans to advance FG-3246 into a Phase 2 study by mid-2025. Additionally, FibroGen is focusing on oncology programs and expects to reduce operating costs significantly in 2025. Analyst firms have not reported any upgrades or downgrades, but the company’s strategic focus on oncology may offer potential growth opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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