FibroGen Prices Follow-On Offering

By Chris Lange Published Aug 16, 12:15PM EDT

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Shares of FibroGen Inc. (NASDAQ: FGEN) saw a handy gain on Wednesday after the firm announced the pricing of its underwritten follow-on offering. The offering is expected to close by August 21.

Under the terms of the offering, FibroGen is selling 8.0 million shares for $40.75 per share, with an overallotment option for an additional 1.2 million shares. At this price, the entire offering is valued up to $374.9 million.

The underwriters for the offering are Goldman Sachs, Citigroup and Leerink Partners.

This science-based biopharmaceutical company is discovering and developing first-in-class therapeutics. The firm has taken a global approach to the development and future commercialization of its product candidates, and this includes development and commercialization in China.

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FibroGen described its pipeline as follows:

Roxadustat (FG-4592), its most advanced product candidate, is an oral small molecule inhibitor of HIF prolyl hydroxylase (HIF-PH) activity in Phase 3 clinical development for the treatment of anemia in chronic kidney disease (CKD). Pamrevlumab (FG-3019), a fully-human monoclonal antibody that inhibits the activity of connective tissue growth factor (CTGF) is in Phase 2 clinical development for the treatment of pancreatic cancer and Duchenne muscular dystrophy (DMD) and recently completed a Phase 2 double-blind study in idiopathic pulmonary fibrosis (IPF).

In the SEC filing, FibroGen detailed its plans for the net proceeds:

We intend to use the net proceeds from this offering to fund the expansion of product development, including our development of pamrevlumab beyond current Phase 2 programs, manufacturing and commercialization activities, as well as for general corporate purposes, which may include, among other things, funding research and development, clinical trials, manufacturing, potential regulatory submissions, hiring additional personnel and capital expenditures. We have no current commitments or agreements with respect to any such transactions. We have not determined the amounts we plan to spend on any of the areas listed above or the timing of these expenditures.

Shares of FibroGen were last seen up nearly 3% at $42.45 on Wednesday, with a consensus analyst price target of $69.40 and a 52-week range of $15.60 to $51.70.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.