FibroGen was showing stable results in stock when the stock suddenly crashed by over 40% today on July 14. The stock was trading at $25.22 on July 14. The sudden drop that happened today right at the opening of the market, was caused by the negative outcome of approving a new drug. What will happen to the company after this drop?
AdCom Snub FibroGen said that the company’s roxadustat application was rejected by the committee of the Food and Drug Administration’s Cardiovascular and Renal Drugs Advisory. Roxadustat is a potential treatment for anemia due to chronic kidney disease. The committee then declined to accept roxadustat for the treatment of patients with non-dialysis. The overall results of the voting were 12-to-1 against.
Despite this rejection, the drug is approved in various countries such as China, South Korea, Chile, and Japan. The drug helps treat anemia. Adding to that, the drug has been approved by Medicinal Products for Human Use of the European Medicines Agency.
Finance and Entertainment Reporter
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