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BofA Securities has downgraded FibroGen (NASDAQ:FGEN) to underperform, citing an "unfavorable catalyst pathway" and the expected loss of Chinese market exclusivity of its anemia drug roxadustat around 2026.
The investment bank said it views upcoming data readouts from two Phase 3 studies of the company's drug pamrevlumab as "high risk" and has thus excluded them from its model.
Shares of FibroGen ended the trading session Tuesday 19% lower at $1.44.
FibroGen is expected to report Phase 3 data from a study of pamrevlumab in the treatment of ambulatory Duchenne muscular dystrophy, or DMD, in Q3. A readout from a Phase 3 study of the drug in pancreatic cancer is anticipated in the first half of 2024. BofA noted that both populations are very difficult to treat.
BofA also lowered its price target for FibroGen, to $2 from $4.
FibroGen's stock has been battered in recent weeks in the wake of two failed Phase 3 studies for pamrevlumab, one for DMD and the other for idiopathic pulmonary fibrosis. Both study results were released in June.
As of Tuesday evening, the stock had fallen 92% over the past three months, according to Dow Jones data. The company released its quarterly earnings report on Monday.
More on FibroGen:
FibroGen, Inc. (FGEN) Q2 2023 Earnings Call Transcript
FibroGen GAAP EPS of -$0.90 misses by $0.16, revenue of $44.32M beats by $9.53M
FibroGen to cut 32% of U.S. workforce in restructuring plan
Stifel downgrades FibroGen to hold, says it's lost confidence in lead drug
FibroGen crashes 86% as late-stage trial for lung disease candidate fails
FibroGen slips as late-stage trial for Duchenne candidate fails