FibroGen raised to buy by Stifel ahead of Phase 3 data for pamrevlumab

FibroGen (NASDAQ:FGEN) stock has been upgraded to buy by Stifel ahead of the expected release of data from two Phase 3 studies for its drug pamrevlumab.

Stifel said in its note dated June 1 that the company was fast approaching two "critical" data readouts for pamrevlumab in the treatment of non-ambulatory Duchenne muscular dystrophy, or DMD, and idiopathic pulmonary fibrosis, or IPF.

Results from the Phase 3 study for DMD, called LELANTOS-1, are expected in Q2, while results from the IPF study, called ZEPHYRUS-1, are anticipated mid-2023.

Stifel said that while it is "uncertain" about the LELANTOS data, which it believes could put near-term downward pressure of up to 20% on the stock, it is more "sanguine" about the ZEPHYRUS study.

"A positive outcome for Pam could be meaningful beyond any one program’s value contribution, specifically presenting the opportunity to reestablish credibility," wrote Stifel analysts. "Trial success would push the stock to multiples of its current level."

Stifel raised its price target on FibroGen to $28 from $23.

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