FibroGen, Inc. (NASDAQ: FGEN) reported its third‑quarter 2025 financial results, posting revenue of $1.1 million—$0.54 million below the consensus estimate of $1.64 million—and a net loss from continuing operations of $13.1 million, or $3.25 per share, compared with a consensus loss of $4.01 per share. The miss on both revenue and earnings reflects the company’s transition away from its former China‑based sales, which generated $46.3 million in Q3 2024, and the ongoing costs of ramping up its U.S. clinical pipeline.
The revenue shortfall is largely attributable to the divestiture of FibroGen China to AstraZeneca for approximately $220 million, which eliminated the company’s high‑margin roxadustat sales in that market. With the China operations gone, the company’s remaining revenue base is concentrated on early‑stage development activities and limited U.S. sales, resulting in a sharp decline in top‑line performance. The company’s management noted that the sale has simplified its capital structure and extended its cash runway to 2028, providing a financial cushion for the upcoming Phase 2 and Phase 3 trials of FG‑3246 and roxadustat.
Despite the revenue miss, FibroGen’s operating expenses fell sharply, driven by a $7.5 million reduction in research and development spend and a $2.3 million cut in general and administrative costs. The cost discipline helped keep the net loss from widening as much as it did, but the company still reported a loss per share that is $0.76 higher than analysts had expected. The company’s cash balance stood at $121.1 million as of September 30 2025, giving it a runway that extends to 2028 under current burn rates.
Management outlined its outlook for the remainder of 2025, stating that the Phase 2 monotherapy trial of FG‑3246 is underway and that an interim analysis is expected in the second half of 2026. The company also confirmed that it will submit a Phase 3 protocol for roxadustat in low‑risk myelodysplastic syndromes in the fourth quarter of 2025. These milestones signal a strategic shift toward U.S.‑centric development and a focus on high‑potential assets, even as the company navigates the short‑term revenue dip caused by the China divestiture.
The market reaction to the earnings was muted, with the stock trading flat in after‑hours sessions. Investors appear to have weighed the positive cash‑runway extension against the immediate revenue decline, resulting in a neutral overall sentiment. The company’s guidance for the next quarter remains unchanged, indicating cautious optimism about the trajectory of its clinical pipeline while acknowledging the need to manage costs carefully.
The earnings release underscores FibroGen’s transition from a China‑heavy revenue model to a U.S.‑focused development strategy. While the company missed consensus estimates, its disciplined cost management and extended cash runway position it to pursue its next clinical milestones without immediate liquidity pressure.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.