FibroGen Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

FibroGen reported a 22% revenue increase in Q2 2022, totaling $29.8 million compared to $24.4 million in the same quarter last year. The company completed enrollment for the LELANTOS-2 Phase 3 trial of pamrevlumab in ambulatory DMD patients. Notably, roxadustat sales in China reached $53.1 million, marking a considerable jump in volume. However, the net loss for the quarter was $72.6 million, an improvement from a loss of $134.0 million a year ago. FibroGen expects topline data from multiple pivotal trials in 2023.

Positive

• 22% revenue growth YoY, from $24.4 million to $29.8 million in Q2 2022.
• Roxadustat sales in China increased significantly, reaching $53.1 million.
• Completed enrollment of LELANTOS-2 Phase 3 study, important for pipeline expansion.

Negative

• Net loss of $72.6 million in Q2 2022, although improved from $134.0 million last year.

• Completed enrollment of LELANTOS-2 Phase 3 study of pamrevlumab in ambulatory patients with Duchenne muscular dystrophy
  
  
• 2Q 2022 revenue of $29.8 million, growth of 22% vs. 2Q 2021
  
  
• Continued significant roxadustat volume growth in China
  

SAN FRANCISCO, Aug. 08, 2022 (GLOBE NEWSWIRE) -- FibroGen, Inc. (NASDAQ: FGEN) today reported financial results for the second quarter 2022 and provided an update on the company’s recent developments.

“We continue making excellent progress with pamrevlumab across all our high value indications and are pleased to have recently completed enrollment of the LELANTOS-2 Phase 3 study in ambulatory patients with Duchenne muscular dystrophy. We now expect topline data from three pivotal pamrevlumab Phase 3 trials in 2023: the ZEPHYRUS-1 trial in idiopathic pulmonary fibrosis, and the LELANTOS-1 and LELANTOS-2 trials in non-ambulatory and ambulatory Duchenne muscular dystrophy, respectively,” said Enrique Conterno, Chief Executive Officer, FibroGen. “We are delighted with our roxadustat sales in China, showing significant year-over-year volume growth. In Europe, our partner Astellas continues with additional roxadustat launches.”

Recent Developments:

• Completed enrollment of the LELANTOS-2 Phase 3 clinical trial of pamrevlumab in ambulatory patients with Duchenne muscular dystrophy (DMD).
• Completed interim analysis of event free survival in the LAPIS Phase 3 study of pamrevlumab in locally advanced pancreatic cancer (LAPC), and the study will continue to its primary endpoint of overall survival.
• Roxadustat continues to be approved in additional countries, most recently in Mexico and South Africa. It is now approved in China, Europe, Japan, and numerous other territories for the treatment of CKD patients on dialysis and patients not on dialysis.
  

China Performance:

• FibroGen’s net product revenue under U.S. GAAP from sale of roxadustat in China was $23.3 million compared to $13.4 million in the second quarter of 2021.
• Second quarter total roxadustat net sales in China¹ by FibroGen and the distribution entity (JDE) jointly owned by FibroGen and AstraZeneca was $53.1 million, compared to $52.8 million in the second quarter of 2021. This result was driven by an increase in volume of over 80% benefitting from the National Reimbursement Drug List (NRDL) price reduction.
• Roxadustat continues to be the number one brand based on value share in the anemia of CKD market in China.
  

Upcoming Milestones:

• Topline data from the LELANTOS-1 Phase 3 study of pamrevlumab in non-ambulatory DMD patients expected 1H 2023.
• Topline data from the MATTERHORN Phase 3 study of roxadustat in anemia of myelodysplastic syndromes (MDS) expected 1H 2023.
• Topline data from the ZEPHYRUS-1 Phase 3 study of pamrevlumab in IPF expected mid-2023.
• Topline data from the LELANTOS-2 Phase 3 study of pamrevlumab in ambulatory DMD patients expected 2H 2023.
• Topline data from the LAPIS Phase 3 study of pamrevlumab in LAPC expected 1H 2024.
  

Financial:

• Total revenue for the second quarter of 2022 was $29.8 million, as compared to $24.4 million for the second quarter of 2021.
• Net loss for the second quarter of 2022 was $72.6 million, or $0.78 net loss per basic and diluted share, compared to a net loss of $134.0 million, or $1.45 net loss per basic and diluted share one year ago.
• At June 30, 2022, FibroGen had $517.6 million in cash - defined as cash, cash equivalents, investments, and accounts receivable.
• Based on our latest forecast, we estimate a 2022 ending cash balance of $330-$360 million.

_____________________________
¹ Total roxadustat net sales in China includes 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 and FibroGen is not consolidated into FibroGen’s financial statements.

Conference Call and Webcast Details
FibroGen will host a conference call and webcast today, Monday, August 8, 2022, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss financial results and provide a business update. A live audio webcast of the call may be accessed in the investor section of the Company’s website, www.fibrogen.com. To access the call by phone, please go to this link (registration link), and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at the following link (webcast replay).

About Pamrevlumab
Pamrevlumab is a potential first-in-class antibody being developed by FibroGen to inhibit the activity of connective tissue growth factor (CTGF), a common factor in fibrotic and proliferative disorders characterized by persistent and excessive scarring that can lead to organ dysfunction and failure. Pamrevlumab is in Phase 3 clinical development for the treatment of idiopathic pulmonary fibrosis (IPF), locally advanced unresectable pancreatic cancer (LAPC), and Duchenne muscular dystrophy (DMD), and in Phase 2/3 for the treatment of metastatic pancreatic cancer. The U.S. Food and Drug Administration has granted Orphan Drug Designation (ODD), and Fast Track designation to pamrevlumab for the treatment of patients with IPF, LAPC, and DMD. The U.S. Food and Drug Administration has also granted Rare Pediatric Disease Designation to pamrevlumab for the treatment of patients with DMD. Pamrevlumab has demonstrated a safety and tolerability profile that has supported ongoing clinical investigation in IPF, LAPC, and DMD. Pamrevlumab is an investigational drug and not approved for marketing by any regulatory authority. For information about pamrevlumab studies currently recruiting patients, please visit www.clinicaltrials.gov.

About Roxadustat
Roxadustat, 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 anemia of chronic kidney disease (CKD) and anemia associated with myelodysplastic syndromes (MDS), and for chemotherapy-induced anemia (CIA).

Roxadustat is approved in China, Europe, Japan, and numerous other countries for the treatment of anemia of CKD in adult patients on dialysis (DD) and not on dialysis (NDD). Several other licensing applications for roxadustat have been submitted by partners, Astellas and AstraZeneca to regulatory authorities across the globe, and are currently under review.

Astellas and FibroGen are collaborating on the development and commercialization of roxadustat for the potential treatment of anemia in territories including Japan, Europe, Turkey, Russia and the Commonwealth of Independent States, the Middle East, and South Africa. FibroGen and AstraZeneca are collaborating on the development and commercialization of roxadustat for the potential treatment of anemia in the U.S., China, other markets not licensed to Astellas.

About FibroGen
FibroGen, Inc. is a biopharmaceutical company committed to discovering, developing, and commercializing a pipeline of first-in-class therapeutics. The Company applies its pioneering expertise in connective tissue growth factor (CTGF) biology and hypoxia-inducible factor (HIF) to advance innovative medicines for the treatment of unmet needs. Pamrevlumab, an anti-CTGF human monoclonal antibody, is in clinical development for the treatment of idiopathic pulmonary fibrosis (IPF), locally advanced unresectable pancreatic cancer (LAPC), metastatic pancreatic cancer, and Duchenne muscular dystrophy (DMD). Roxadustat (爱瑞卓^®, EVRENZO^TM) is currently approved in China, Europe, Japan, and numerous other countries for the treatment of anemia in CKD patients on dialysis and patients not on dialysis. Roxadustat is in Phase 3 clinical development in the U.S. and Europe for anemia associated with myelodysplastic syndromes (MDS), and in Phase 3 clinical development in China for treatment of chemotherapy-induced anemia (CIA). FibroGen recently expanded its research and development portfolio to include product candidates in the immuno-oncology and autoimmune space. For more information, please visit www.fibrogen.com.

Forward-Looking Statements

This release contains forward-looking statements regarding our strategy, future plans and prospects, including statements regarding the development and commercialization of the company’s product candidates, the potential safety and efficacy profile of our product candidates, and our clinical programs. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions and are not historical facts and typically are 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. Our 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 our various programs, including the enrollment and results from ongoing and potential future clinical trials, and other matters that are described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, each as filed with the Securities 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, and we undertake no obligation to update any forward-looking statement in this press release, except as required by law.

Condensed Consolidated Balance Sheets (In thousands)
	June 30, 2022				December 31, 2021
	(Unaudited)				(1)
Assets
Current assets:
Cash and cash equivalents	$	167,758			$	171,223
Short-term investments		270,375				233,967
Accounts receivable, net		33,573				17,401
Inventory		40,899				31,015
Prepaid expenses and other current assets		8,038				20,453
Total current assets		520,643				474,059
Restricted time deposits		2,072				2,072
Long-term investments		45,920				167,796
Property and equipment, net		24,505				28,277
Equity method investment in unconsolidated variable interest entity		4,494				3,825
Operating lease right-of-use assets		84,654				91,112
Other assets		4,501				6,680
Total assets	$	686,789			$	773,821
Liabilities, stockholders’ equity and non-controlling interests
Current liabilities:
Accounts payable	$	29,360			$	26,097
Accrued and other liabilities		193,099				172,599
Deferred revenue		6,897				15,857
Operating lease liabilities, current		10,984				10,944
Total current liabilities		240,340				225,497
Product development obligations		16,439				17,613
Deferred revenue, net of current		205,351				186,801
Operating lease liabilities, non-current		83,080				88,776
Other long-term liabilities		17,832				26,021
Total liabilities		563,042				544,708
Total stockholders’ equity		103,780				209,146
Non-controlling interests		19,967				19,967
Total equity		123,747				229,113
Total liabilities, stockholders’ equity and non-controlling interests	$	686,789			$	773,821

(1)   The condensed consolidated balance sheet amounts at December 31, 2021 are derived from audited financial statements.

Condensed Consolidated Statements of Operations (In thousands, except per share data)
	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
	(Unaudited)
Revenue:
License revenue	$	—			$	—			$	22,590			$	—
Development and other revenue		5,457				19,641				17,219				34,228
Product revenue, net		23,256				13,371				42,137				28,733
Drug product revenue		1,093				(8,648	)			8,687				(168	)
Total revenue		29,806				24,364				90,633				62,793
Operating costs and expenses:
Cost of goods sold		6,809				3,078				11,048				6,479
Research and development		70,963				122,567				159,981				197,243
Selling, general and administrative		30,258				32,554				60,820				63,334
Total operating costs and expenses		108,030				158,199				231,849				267,056
Loss from operations		(78,224	)			(133,835	)			(141,216	)			(204,263	)
Interest and other, net:
Interest expense		(141	)			(355	)			(238	)			(856	)
Interest income and other income (expenses), net		5,199				(363	)			4,876				(817	)
Total interest and other, net		5,058				(718	)			4,638				(1,673	)
Loss before income taxes		(73,166	)			(134,553	)			(136,578	)			(205,936	)
Provision for (benefit from) income taxes		23				(3	)			136				130
Investment income in unconsolidated variable interest entity		565				562				885				323
Net loss	$	(72,624	)		$	(133,988	)		$	(135,829	)		$	(205,743	)
Net loss per share - basic and diluted	$	(0.78	)		$	(1.45	)		$	(1.46	)		$	(2.24	)
Weighted average number of common shares used to calculate net loss per share - basic and diluted		93,475				92,276				93,260				91,983

Contacts:

FibroGen, Inc.
Investors:
Michael Tung, M.D.
Corporate Strategy / Investor Relations
415.978.1434
mtung@fibrogen.com

Media:
Meichiel Keenan
Investor Relations and Corporate Communications
mkeenan@fibrogen.com 

 

FAQ

What were FibroGen's Q2 2022 earnings results?

FibroGen reported earnings of $29.8 million in Q2 2022, a 22% increase from the previous year.

What is the financial outlook for FibroGen?

FibroGen anticipates a 2022 ending cash balance of $330-$360 million.

When can we expect topline data from FibroGen's clinical trials?

Topline data from multiple Phase 3 trials is expected throughout 2023.

How did roxadustat perform in China?

Roxadustat sales in China were $53.1 million in Q2 2022, showing strong volume growth.