FibroGen Reports 99% Revenue Decline and Significant Operational Changes in Latest 10-Q

FibroGen, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2025. The company recorded total revenue of $1.1 million for the third quarter, a substantial decrease of 99% compared to $123 million in the same period last year. For the nine months ended September 30, 2025, revenue fell to $5.2 million from $26.5 million in 2024. The decline was primarily attributed to a sharp drop in drug product revenue, which decreased by 81% to $4.8 million, down from $25 million in the previous year, largely due to the termination of the AstraZeneca U.S./RoW Agreement and the subsequent divestiture of its China operations.

Operating expenses also saw a significant reduction, totaling $6.5 million for the third quarter, down 86% from $47.8 million a year earlier. This decrease was driven by the absence of a $18.6 million restructuring charge recorded in the prior year, alongside lower research and development costs, which fell by 94% to $1.2 million. The company reported a loss from continuing operations of $13.1 million, or $3.25 per share, compared to a loss of $48.3 million, or $12.01 per share, in the same quarter of 2024.

Strategically, FibroGen completed the sale of its China operations to AstraZeneca for $220.4 million on August 29, 2025. This transaction included $85 million in enterprise value and $135.4 million in cash, which has significantly bolstered the company's liquidity. Following the sale, FibroGen repaid its senior secured term loan facilities, alleviating previous financial burdens. The company ended the quarter with cash and cash equivalents of $118 million, a notable increase from $50.5 million at the end of 2024.

In terms of operational developments, FibroGen is advancing its clinical programs, particularly the Phase 2 study of FG-3246, an antibody-drug conjugate targeting metastatic castration-resistant prostate cancer. The company is also preparing for a Phase 3 trial of roxadustat in treating anemia associated with lower-risk myelodysplastic syndromes, with plans to submit the trial protocol to the FDA in the fourth quarter of 2025. FibroGen has retained rights to roxadustat in the U.S. and other markets outside of China, where it has partnered with Astellas for commercialization.

Looking ahead, FibroGen's management expressed confidence that the cash proceeds from the divestiture will be sufficient to fund its planned operations for at least the next 12 months. However, the company acknowledged the ongoing need for additional funding to support its research and development efforts, particularly as it navigates the complexities of clinical trials and market conditions.