Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 14 Feb, 25 | FGEN | Buy | USD 0.5208 | USD 0.5765 | USD 0.6173 | 3 days | 18.5% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
FibroGen, Inc., a biopharmaceutical company, discovers, develops, and commercializes therapeutics to treat serious unmet medical needs. Its lead product candidates are Pamrevlumab, a human monoclonal antibody targeting connective tissue growth factor that is in Phase III clinical development for the treatment of locally advanced pancreatic cancer; and Roxadustat, an oral small molecule inhibitor of hypoxia-inducible factor prolyl hydroxylase activity, which has completed Phase III clinical development for the treatment of anemia in chronic kidney disease in China, Europe, Japan, and other countries, as well as in Phase III clinical development for anemia related with myelodysplastic syndromes. The company has collaboration agreements with Astellas Pharma Inc. and AstraZeneca AB. FibroGen, Inc. was incorporated in 1993 and is headquartered in San Francisco, California.
Revenue Growth: Total revenue for Q3 2024 increased to $46.3 million, up from $40.1 million in Q3 2023, reflecting a 15% year-over-year increase
Reduced Net Loss: Net loss improved significantly, decreasing from $63.6 million in Q3 2023 to $17.1 million in Q3 2024, a 73% reduction in losses
Declining Cash Reserves: Cash, cash equivalents, and accounts receivable were $160.0 million as of September 30, 2024, reflecting a continued cash burn compared to prior quarters, although the company expects additional repatriation of cash from China to extend runway into 2026.
Pamrevlumab Trial Failures: Two Phase 3 clinical trials for pamrevlumab (PanCAN Precision Promise and LAPIS) failed to meet their primary endpoints, potentially impacting future revenue and pipeline strength
Key investment risks for FibroGen include clinical trial failures (e.g., pamrevlumab not meeting primary endpoints), regulatory uncertainties, reliance on China for revenue growth, ongoing net losses despite improvements, and potential cash flow constraints affecting long-term sustainability.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 0.5208 | 0.4643 | 0.5765 | 0.6173 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (On the Daily Chart)
On the daily chart, FGEN stock is holding above the rising trendline support, suggesting potential upward momentum ahead. The next resistance level is set around USD 0.600, which the price may test in the short term (2-6 weeks). A breakout above USD 0.600 could drive further buying interest and potentially extend the stock’s upward movement.
Technical Analysis (On the Daily Chart)
On the daily chart, the momentum oscillator RSI (14-period) is currently at approximately 53.72, signaling positive momentum. Weekly volumes also support the potential for an upward move. Additionally, the current market price (CMP) is trading above the 21-period Simple Moving Average (SMA), a key trend-following indicator that may act as a support level, reinforcing the bullish outlook.
General Recommendation:
As per the above-mentioned price action and technical indicators analysis, FibroGen Inc. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| FGEN FibroGen Inc |
-0.0026 0.84% | 0.31 | - | 61.35 | 0.87 | 53.83 | 0.31 | -0.1735 |
| NVO Novo Nordisk A/S |
-0.8143 1.17% | 68.63 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
0.0025 0.0036% | 68.96 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
0.03 0.0062% | 484.85 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
-7.26 1.14% | 626.97 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
