FibroGen to Shrink US Workforce by 75% Following More Late-Stage Fails

1. Workforce Reduction: FibroGen plans to lay off 75% of its U.S. workforce due to the failure of its lead cancer drug, pamrevlumab, in two late-stage clinical trials.
2. Clinical Trial Failures: Pamrevlumab failed to meet primary endpoints in Phase III trials for pancreatic cancer and previously failed in trials for Duchenne muscular dystrophy.
3. Previous Layoffs: Last year, FibroGen laid off 104 employees, approximately one-third of its U.S. workforce, following earlier trial failures.
4. Financial Impact: FibroGen’s shares dropped by about 40% in premarket trading following the announcement.
5. Pipeline Adjustments: The company will suspend the development of pamrevlumab but will continue commercial agreements for its anaemia therapy, roxadustat.
6. Other Layoffs in the Bay Area: Other companies in the Bay Area, including NerdWallet, Moxion Power, SunPower, Humble Games, and Intel, have also announced significant layoffs.