FibroGen, a pharmaceutical company, experienced a major drop in its share prices after the announcement of its failed Phase 3 trial of pamrevlumab for treating idiopathic pulmonary fibrosis. The shares went down by 84% and settled at $2.75, which is a 52-week low.
Disappointing Results
The company reported that the trial did not meet its primary endpoint—the change from baseline in forced vital capacity at week 48. As per the safety analysis, the drug was well-tolerated by patients. The trial’s secondary endpoint of time to disease progression was also not met. William Blair and Raymond James have downgraded FibroGen’s ratings to Market Perform.
Cost-Reduction Effort
Based on the trial’s results, FibroGen has decided to discontinue its second Phase 3 clinical trial. The company plans to reduce costs significantly in the US to ensure that its cash runway is extended until 2026.
The stock had previously reached a 52-week high of $25.69 in Feb. 2021 before declining 76% in the past year. Despite the trial’s failure, FibroGen plans to continue pursuing research and development to improve patients’ lives.
