24/7 Market News Snapshot 20 February, 2025 – FibroGen, Inc (NASDAQ:FGEN)

February 20, 2025

DENVER, Colo., 20 February, 2025 (247marketnews.com) – (NASDAQ:FGEN) are discussed in this article.
FibroGen, Inc. is experiencing a notable surge in market activity, with its stock price soaring by 53.56% to $0.863 in pre-market trading, compared to the previous close of $0.562. The trading volume has reached an impressive 9.42 million shares, indicating robust investor interest and the potential for continued upward momentum. This significant price movement highlights strong support levels for the stock, making it a focal point for traders closely monitoring resistance levels and forthcoming news that could influence further gains.

In a strategic development, FibroGen has announced the upcoming sale of its subsidiary in China to AstraZeneca for approximately $160 million. This deal is structured with an enterprise value of $85 million, complementing an estimated net cash position in China of around $75 million. The transaction is anticipated to close by mid-2025, pending regulatory approvals. FibroGen plans to utilize a portion of the proceeds to repay its term loan to Morgan Stanley Tactical Value, thereby streamlining its capital structure.

“This sale repositions FibroGen for future growth and innovation,” remarked Thane Wettig, Chief Executive Officer. The company aims to bolster its financial stability, allowing for advancements in its oncology pipeline, especially the Phase 2 trial of FG-3246 targeting metastatic castration-resistant prostate cancer, expected to commence in the second quarter of 2025. Moreover, the rights to roxadustat, a key treatment for anemia in chronic kidney disease, will be transferred to AstraZeneca, although FibroGen will retain commercialization rights in the United States and other regions.

To discuss these developments further, FibroGen’s management will hold a conference call and webcast, inviting stakeholders and interested parties to engage with the company as it embarks on this significant transition in its operational strategy.

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