FibroGen, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $1.35 million, a decrease of 35% compared to $998,000 in the same period last year. For the first half of 2025, revenue fell to $4.09 million from $26.36 million in 2024, primarily due to a substantial drop in drug product revenue, which decreased by 85% to $3.81 million. The company attributed this decline to the termination of the AstraZeneca U.S./RoW Agreement, which had previously contributed significantly to revenue.
Operating costs and expenses also saw a notable reduction, decreasing by 72% to $13.4 million for the second quarter and by 75% to $31.06 million for the first half of 2025. This reduction was largely driven by lower employee-related expenses following a workforce reduction in August 2024, as well as decreased clinical trial and stock-based compensation costs. The company reported a loss from continuing operations of $13.68 million for the second quarter, a significant improvement from a loss of $47.1 million in the prior year, reflecting the impact of cost-cutting measures.
In terms of strategic developments, FibroGen is in the process of selling its subsidiary, FibroGen International, to AstraZeneca Treasury Limited for an estimated total of $210 million, which includes $85 million in cash and additional cash based on net holdings in China. This transaction is expected to close in the third quarter of 2025 and is seen as a critical step for the company to access cash from its operations in China. The sale is part of a broader strategy to streamline operations and focus on core therapeutic areas, including the development of FG-3246, an antibody-drug conjugate targeting metastatic castration-resistant prostate cancer.
Operationally, FibroGen's cash and cash equivalents decreased to $23.37 million as of June 30, 2025, down from $50.48 million at the end of 2024. The company reported a net cash inflow from operating activities of $15.4 million for the first half of 2025, a significant turnaround from a cash outflow of $99.16 million in the same period last year. The company continues to face liquidity challenges, with substantial doubt about its ability to continue as a going concern if it cannot complete the sale of FibroGen International or secure additional funding.
Looking ahead, FibroGen plans to initiate a Phase 2 clinical study for FG-3246 in the third quarter of 2025, pending the completion of the sale to AstraZeneca. The company is also working on its development plan for roxadustat in treating anemia associated with lower-risk myelodysplastic syndromes, following a positive meeting with the FDA regarding its proposed Phase 3 study design. Despite the current financial challenges, FibroGen aims to leverage its ongoing clinical programs and strategic partnerships to enhance its market position in the biopharmaceutical sector.
About FIBROGEN INC
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