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FibroGen Reports Third Quarter 2024 Financial Results

FGEN 11.12.2024

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Drug:roxadustat-unknown roxadustat

Diseases:anemia of CKD

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Topline results from Phase 2 portion of the investigator-sponsored study of FG-3246, a first-in-class antibody-drug conjugate (ADC) targeting CD46, in combination with enzalutamide in patients with metastatic castration-resistant prostate cancer (mCRPC) are expected in 1H 2025
Initiation of Phase 2 monotherapy dose optimization study of FG-3246 in mCRPC anticipated in 1Q 2025
Third quarter net revenue growth of 15% year over year, driven by strong performance of roxadustat inChina, with year over year volume growth of 34%
- Reiterate full year net product revenue guidance of$135 millionto$150 million, representing full year total roxadustat net sales inChina¹between$330 millionto$350 million

Meaningful progress onU.S.cost reduction plan
- Expected to be substantially complete by year-end 2024

Cash, cash equivalents and accounts receivable balance of$160.0 million

SAN FRANCISCO,Nov. 12, 2024(GLOBE NEWSWIRE) --FibroGen, Inc.(NASDAQ: FGEN) today reported financial results for the third quarter 2024 and provided an update on the company’s recent developments.

“This past quarter we transformed into a lean and more focused organization, resulting in significant cost savings that will extend into the future. Moreover, roxadustat continued its impressive performance, generating$96.6 millionin net sales inChinaduring the quarter,” saidThane Wettig, Chief Executive Officer,FibroGen. “Having implemented our cost reduction plan, we are well positioned to advance FG-3246, with topline results from the Phase 2 portion of the investigator-sponsored study of FG-3246 in combination with enzalutamide at theUniversity of California San Francisco(UCSF) on track for the first half of 2025, and the anticipated start of our Phase 2 monotherapy trial in the first quarter of 2025. We continue to be optimistic about our future prospects.”

Recent Developments and Key Events of Third Quarter 2024:

Meaningful progress onU.S.cost reduction plan.
- Expected to be substantially complete by year-end 2024
Reported topline results from the pamrevlumab arm of PanCAN Precision Promise Phase 2/3 adaptive platform trial for the treatment of metastatic pancreatic ductal adenocarcinoma (mPDAC), in which the trial did not meet the primary endpoint.
Reported topline results from the LAPIS Phase 3 study of pamrevlumab in patients with locally advanced, unresectable pancreatic cancer (LAPC), in which the trial did not meet the primary endpoint.

Upcoming Milestones:

Roxadustat

Expect approval decision for roxadustat in chemotherapy-induced anemia (CIA) inChinain early 2025. If approved,FibroGenwill receive a$10 millionmilestone payment from AstraZeneca.

FG-3246 and FG-3180 (PET Imaging Agent)

Topline results from the Phase 2 portion of the investigator-sponsored Phase 1b/2 study conducted by UCSF of FG-3246 in combination with enzalutamide in patients with mCRPC expected in 1H 2025.
Anticipate initiation of Phase 2 monotherapy dose optimization study of FG-3246 in mCRPC in 1Q 2025. This trial will include a sub-study of FG-3180 to enable assessment of CD46 expression and response to FG-3246.

China:

Third quarterFibroGennet product revenue underU.S.GAAP from the sale of roxadustat inChinawas$46.2 millioncompared to$29.4 millionin the third quarter of 2023, an increase of 57% year over year.
Third quarter total roxadustat net sales inChina¹byFibroGenand the distribution entity jointly owned byFibroGenand AstraZeneca (JDE) was$96.6 million, compared to$77.1 millionin the third quarter of 2023, an increase of 25% year over year, driven by a 34% increase in volume.
Roxadustat continues to be the number one brand based on value share in the anemia of CKD market inChina.
For 2024, FibroGen’s expected full year net product revenue underU.S.GAAP reiterated to a range between$135 millionto$150 million, representing expected full year roxadustat net sales inChina¹byFibroGenand the JDE of$330 millionto$350 million.

Financial:

Total revenue for the third quarter of 2024 was$46.3 million, as compared to$40.1 millionfor the third quarter of 2023, an increase of 15% year over year.
Net loss for the third quarter of 2024 was$17.1 million, or$0.17net loss per basic and diluted share, compared to a net loss of$63.6 million, or$0.65net loss per basic and diluted share one year ago.
AtSeptember 30, 2024,FibroGenreported$160.0 millionin cash, cash equivalents and accounts receivable.
Assuming additional repatriation of cash from ourChinaoperations, we expect our cash, cash equivalents and accounts receivable to be sufficient to fund our operating plans into 2026.

Conference Call and Webcast DetailsFibroGenmanagement will host a conference call and webcast today,Tuesday, November 12, 2024, at5:00 PM Eastern Timeto discuss financial results and provide a business update. Interested parties may access the conference call by dialing 1-877-300-8521 (in theU.S.) or 1-412-317-6026 (outside theU.S.). The call will be available via webcast byclicking hereor on the “Events and Presentation” page on theFibroGenwebsite.

About RoxadustatRoxadustat, an oral medication, is the first in a new class of medicines comprising HIF-PH inhibitors that promote erythropoiesis, or red blood cell production, through increased endogenous production of erythropoietin, improved iron absorption and mobilization, and downregulation of hepcidin. Roxadustat is in clinical development for chemotherapy-induced anemia (CIA) and a Supplemental New Drug Application (sNDA) has been accepted by theChina Health Authority.

Roxadustat is approved inChina,Europe,Japan, and numerous other countries for the treatment of anemia of CKD in adult patients on dialysis (DD) and not on dialysis (NDD). Astellas andFibroGenare collaborating on the development and commercialization of roxadustat for the potential treatment of anemia in territories includingJapan,Europe,Turkey,Russia, and the Commonwealth of Independent States, theMiddle East, andSouth Africa. AstraZeneca andFibroGencontinue to collaborate on the development and commercialization of roxadustat inChina.

AboutFibroGenFibroGen, Inc.is a biopharmaceutical company focused on accelerating the development of novel therapies at the frontiers of cancer biology. Roxadustat (爱瑞卓^®, EVRENZO^TM) is currently approved inChina,Europe,Japan, and numerous other countries for the treatment of anemia in chronic kidney disease (CKD) patients on dialysis and not on dialysis. Roxadustat is in clinical development for chemotherapy-induced anemia (CIA) and a Supplemental New Drug Application (sNDA) has been accepted for review by theChina Health Authority. FG-3246 (also known as FOR46), a first-in-class antibody-drug conjugate (ADC) targeting CD46 is in development for the treatment of metastatic castration-resistant prostate cancer. This program also includes the development of an associated CD46-targeted PET imaging agent, FG-3180. In addition, FibroGen’s research and development portfolio includes two immuno-oncology product candidates for the treatment of solid tumors. For more information, please visitwww.fibrogen.com.

Forward-Looking StatementsThis release contains forward-looking statements regarding FibroGen’s strategy, future plans and prospects, including statements regarding its commercial products and clinical programs and those of its collaboration partners Fortis and UCSF. These forward-looking statements include, but are not limited to, statements regarding the efficacy, safety, and potential clinical or commercial success ofFibroGenproducts and product candidates, statements under the caption “Upcoming Milestones”, statements regarding the potential for cash, cash equivalents and accounts receivable to fund FibroGen’s operating plans into 2026, and statements about FibroGen’s plans and objectives. These forward-looking statements are typically identified by use of terms such as “may,” “will”, “should,” “on track,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. FibroGen’s actual results may differ materially from those indicated in these forward-looking statements due to risks and uncertainties related to the continued progress and timing of its various programs, including the enrollment and results from ongoing and potential future clinical trials, and other matters that are described in FibroGen’s Annual Report on Form 10-K for the fiscal year endedDecember 31, 2023, and our Quarterly Report on Form 10-Q for the quarter endedSeptember 30, 2024, each as filed with theSecurities and Exchange Commission(SEC), including the risk factors set forth therein. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, andFibroGenundertakes no obligation to update any forward-looking statement in this press release, except as required by law.

^{1_{Total roxadustat net sales inChinaincludes sales made by the distribution entity as well as FibroGen China’s direct sales, each to its own distributors. The distribution entity jointly owned by AstraZeneca andFibroGenis not consolidated into FibroGen’s financial statements.}}

Condensed Consolidated Balance Sheets(In thousands)

	September 30, 2024			December 31, 2023
	(Unaudited)			(1)
Assets
Current assets:
Cash and cash equivalents	$	131,003		$	113,688
Short-term investments		—			121,898
Accounts receivable, net		29,030			12,553
Inventory		23,937			41,565
Prepaid expenses and other current assets		60,559			41,855
Total current assets		244,529			331,559

Restricted time deposits		1,658			1,658
Property and equipment, net		7,603			13,126
Equity method investment in unconsolidated variable interest entity		5,806			5,290
Operating lease right-of-use assets		2,093			68,093
Other assets		2,732			3,803
Total assets	$	264,421		$	423,529

Liabilities, stockholders’ equity and non-controlling interests
Current liabilities:
Accounts payable	$	9,238		$	17,960
Accrued and other liabilities		151,141			172,891
Deferred revenue		28,858			12,740
Operating lease liabilities, current		1,293			14,077
Total current liabilities		190,530			217,668

Product development obligations		18,199			17,763
Deferred revenue, net of current		126,219			157,555
Operating lease liabilities, non-current		707			66,537
Senior secured term loan facilities, non-current		72,779			71,934
Liability related to sale of future revenues, non-current		56,850			51,413
Other long-term liabilities		837			2,858
Total liabilities		466,121			585,728

Redeemable non-controlling interests		21,480			21,480
Total stockholders’ deficit attributable toFibroGen		(243,667	)		(204,166	)
Nonredeemable non-controlling interests		20,487			20,487
Total deficit		(223,180	)		(183,679	)
Total liabilities, redeemable non-controlling interests and deficit	$	264,421		$	423,529

⁽¹⁾_{The condensed consolidated balance sheet amounts atDecember 31, 2023are derived from audited financial statements.}

Condensed Consolidated Statements of Operations(In thousands, except per share data)

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2024			2023			2024			2023
	(Unaudited)
Revenue:
License revenue	$	—		$	2,649		$	—		$	9,649
Development and other revenue		385			6,775			1,532			15,825
Product revenue, net		46,210			29,390			126,391			77,439
Drug product revenue, net		(262	)		1,320			24,954			17,701
Total revenue		46,333			40,134			152,877			120,614

Operating costs and expenses:
Cost of goods sold		5,295			4,243			36,227			13,441
Research and development		21,708			61,194			94,206			231,158
Selling, general and administrative		17,554			25,573			62,650			91,029
Restructuring charge		18,554			12,606			18,554			12,606
Total operating costs and expenses		63,111			103,616			211,637			348,234
Loss from operations		(16,778	)		(63,482	)		(58,760	)		(227,620	)

Interest and other, net:
Interest expense		(4,994	)		(5,022	)		(14,774	)		(10,464	)
Interest income and other income (expenses), net		3,802			4,296			5,092			7,984
Total interest and other, net		(1,192	)		(726	)		(9,682	)		(2,480	)

Loss before income taxes		(17,970	)		(64,208	)		(68,442	)		(230,100	)
Benefit from income taxes		12			84			(217	)		(77	)
Investment income in unconsolidated variable interest entity		898			677			2,664			2,023
Net loss	$	(17,084	)	$	(63,615	)	$	(65,561	)	$	(228,000	)

Net loss per share - basic and diluted	$	(0.17	)	$	(0.65	)	$	(0.66	)	$	(2.35	)

Weighted average number of common shares used to calculate net loss per share - basic and diluted		100,515			98,245			99,780			96,901

For Investor Inquiries:David DeLucia, CFAVice President of Corporate FP&A / Investor Relationsir@fibrogen.com

Source: FibroGen, Inc.

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