Fibrogen IPO May Be Too Risky Based on Akeiba’s Disappointing Clinical Data

Fibrogen’s timing of their IPO could not be any worse.  Fellow anemia biotech company Akeiba, who recently went public, just released very disappointing clinical data and saw their stock take a major hit.

Akebia recently lost 1/3 of their market cap due to the release of the disappointing clinical data.  Akeiba went public in March and is currently left with a $263m valuation – well below float levels.

Both companies were working on anemia drugs that utilize hypoxia inducible factor prolyl hydroxylase (HIF-PH).  Fibrogen backers still believe their $1b valuation is warranted, but don’t be too surprised to see the stock hang out at or below IPO price levels when it goes public later this week.