FibroGen is radically restructuring its business, laying off 75% of its U.S. staff and stopping investment in its lead candidate in response to the failure of two late-phase pancreatic cancer clinical trials.
One year ago, FibroGen laid off 104 employees, around one-third of its U.S. workforce, after the failure of pamrevlumab in two phase 3 trials. Work on two pancreatic cancer studies continued. At a Goldman Sachs event in June, FibroGen CEO Thane Wettig framed the cancer readouts as a pivot point for the biotech—either hit the endpoints and file for approval or miss and be forced to restructure.
The company revealed yesterday that both trials missed their primary endpoints, and Wettig swiftly followed through on his vow to reshape the business for a post-pamrevlumab future. It means that FibroGen is implementing an immediate and significant cost-reduction plan in the U.S.
The plan entails the termination of investment in pamrevlumab R&D and a 75% reduction in FibroGen’s U.S. workforce. Including ex-U.S. employees, FibroGen had 486 staffers at the end of last year.
FibroGen also plans to “expeditiously wind down any remaining pamrevlumab obligations.”
https://www.fiercebiotech.com/biotech/fibrogen-lays-75-us-staff-asset-flunks-2-more-trials