- Raymond James has upgraded FibroGen to outperform from market perform as it sees bullish prospects for phase 3 idiopathic pulmonary fibrosis ( IPF ) candidate pamrevlumab.
- The firm has a $35 price target (69% upside based on Wednesday's close).
- Shares are up 8% in Thursday morning trading.
- Analyst Danielle Brill is optimistic on phase 3 data for pamrevlumab given de-risking provided by phase 2 data. The mid-stage trial lasted for 48 weeks.
- She added that given current treatments for IPF don't do much to halt disease progression and are marred by tolerability issues, pamrevlumab, which is given every three weeks via injection, will have a role based on discussions with key opinion leaders.
- Brill noted that if the phase 3 trial is successful -- similar efficacy to standard of care but with a better safety profile -- the stock could break $50.
- Read why Seeking Alpha contributor Alberto Abaterusso says that FibroGen ( NASDAQ: FGEN ) is a sell .
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FibroGen boosted to outperform at Raymond James on idiopathic pulmonary fibrosis candidate