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FibroGen’s Strategic Sale and Pipeline Focus Justify Buy Rating Amid Financial Strength

FibroGen’s Strategic Sale and Pipeline Focus Justify Buy Rating Amid Financial Strength

FibroGen (FGENResearch Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Matthew Keller from H.C. Wainwright reiterated a Buy rating on the stock and has a $10.00 price target.

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Matthew Keller has given his Buy rating due to a combination of factors that highlight FibroGen’s strategic and financial positioning. The recent announcement of FibroGen’s agreement to sell its China rights for roxadustat to AstraZeneca, expected to bring in approximately $160 million, will significantly bolster the company’s cash reserves. This transaction is anticipated to extend FibroGen’s cash runway into 2027, providing a solid financial foundation amidst challenging macroeconomic conditions.
Additionally, FibroGen’s strategic focus on its U.S. development pipeline, particularly for roxadustat’s use in low-risk MDS (LR-MDS) and other in-house developed assets like FG-3246 and FG-3180, indicates a targeted approach to growth. The company is preparing for key clinical developments, including Phase 2 trials for FG-3246 and advancing roxadustat for potential U.S. approval in LR-MDS. These factors collectively underscore FibroGen’s potential for future growth and justify the Buy rating from Keller.

According to TipRanks, Keller is a 2-star analyst with an average return of 1.2% and a 50.00% success rate.

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