Why FibroGen Stock Is Crashing Today
Shares of FibroGen (NASDAQ: FGEN) were crashing 37.8% lower as of 10:45 a.m. EDT on Wednesday. The huge drop came after the company announced a stunning revelation following the market close on Tuesday. FibroGen revealed that some previously disclosed safety analyses from a late-stage study of roxadustat in treating anemia of chronic kidney disease (CKD) were incorrect.
The big bombshell in FibroGen's announcement is that the company can no longer claim that roxadustat reduces the risk of major adverse cardiovascular events (MACE) compared to erythropoiesis-stimulating agent epoetin alfa. This undercuts something the company has maintained for a couple of years.
The timing couldn't have been much worse. The news broke as FibroGen was preparing for an upcoming U.S. Food and Drug Administration (FDA) advisory committee meeting set to review the regulatory filing for roxadustat.
Source Fool.com
