Goldman Sachs Starts FibroGen (FGEN) at Buy

Goldman Sachs initiates coverage on FibroGen (NASDAQ: FGEN) with a Buy rating and a price target of $32.00.

Analyst Terence Flynn said, "Based on the Roxa Phase 2 data we see three potential benefits over injectable ESAs – potential to improve safety (focus will be on cardiovascular profile), oral dosing, and no need for IV iron."

"The Roxa Phase 3 development program is ongoing and we expect key de-risking data in 2016-2018. The focus in 2015 will be any updates on enrollment and DSMB safety reviews. We assume 65% probability of success in the dialysis setting and 55% in the pre-dialysis setting. We model WW probability adjusted peak Roxa sales of $4bn ($6.8bn unadjusted), of which FGEN receives $1.3bn ($2bn unadjusted)," he added.

For an analyst ratings summary and ratings history on FibroGen click here. For more ratings news on FibroGen click here.

Shares of FibroGen closed at $28.00 yesterday.

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