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.