FibroGen Reports 89% Revenue Decline, Plans Phase 2 Study Amid Liquidity Concerns

FibroGen, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $2.7 million from $25.4 million in the same period last year, representing a decrease of 89%. The drop was primarily attributed to a substantial reduction in drug product revenue, which decreased to $2.6 million from $24.5 million, largely due to the termination of the AstraZeneca U.S./RoW Agreement. The company also recorded a net income of $4.6 million, a notable turnaround from a net loss of $32.9 million in the prior year, driven by lower operating costs and a one-time gain from discontinued operations.

Operating costs and expenses for the quarter decreased by 76% to $17.7 million, down from $74.5 million in the previous year. This reduction was largely due to a significant decrease in cost of goods sold, which fell to $252,000 from $21.3 million, as well as lower research and development expenses, which dropped to $9.2 million from $36.5 million. The company implemented a cost reduction plan in response to previous clinical trial results, which included a workforce reduction of approximately 75% in the U.S. and the termination of certain research programs.

In terms of strategic developments, FibroGen entered into a share purchase agreement with AstraZeneca Treasury Limited on February 20, 2025, to sell its subsidiary FibroGen International, which includes all of its roxadustat assets in China. The transaction, valued at approximately $185 million, is expected to close in the third quarter of 2025, subject to regulatory approval. This sale is part of FibroGen's strategy to streamline operations and focus on its remaining markets, including the U.S., Canada, and Mexico, where it retains rights to roxadustat.

As of March 31, 2025, FibroGen reported cash and cash equivalents of $33.6 million, a decrease from $50.5 million at the end of 2024. The company also noted that it had $72.6 million in cash and cash equivalents and $22 million in accounts receivable in China, which are classified as held for sale assets pending the completion of the transaction with AstraZeneca. The company expressed concerns about its liquidity, stating that if the sale does not close or if it cannot access additional cash from its operations, it may not have sufficient liquidity to continue operations in the U.S. for the next 12 months.

Looking ahead, FibroGen plans to initiate a Phase 2 clinical study for FG-3246, an antibody-drug conjugate targeting CD46 for the treatment of metastatic castration-resistant prostate cancer, in the third quarter of 2025. The company is also evaluating a development plan for roxadustat in anemia associated with lower-risk myelodysplastic syndromes, with feedback from the FDA expected in the third quarter of 2025. However, the company has indicated substantial doubt about its ability to continue as a going concern within the next year, highlighting the need for additional funding to support its operations and development efforts.