Anemia biotech FibroGen files for a $125 million IPO

FibroGen, a biotech developing a novel drug platform for anemia in chronic kidney disease, filed on Wednesday with the SEC to raise up to $125 million in an initial public offering.

FibroGen's lead candidate, roxadustat, is an oral small molecule inhibitor of HIF prolyl hydroxylases, or HIF-PHs, in Phase 3 trials for the treatment of anemia in chronic kidney disease, or CKD. It claims its drug is safer, more effective and more convenient than the current standard of care, injectable erythropoiesis stimulating agents. Its second candidate is a monoclonal antibody in Phase 2 trials for the treatment of idiopathic pulmonary fibrosis, or IPF, pancreatic cancer and liver fibrosis.

FibroGen expects its CKD anemia program to be fully funded through the launch of roxadustat with potential non-contingent milestone payments of up to $900 million from Astellas and $1.6 billion from AstraZeneca. The company generated $108 million of revenue (90% licensing/milestone, 10% collaboration) during the six months ended June 30, 2014, up from $19 million in the prior year period.

Primary shareholders include Chairman and CEO Thomas Neff (13% pre-IPO stake) and Astellas Pharma (11%).

The company lists March 2014 IPO Akebia Therapeutics (AKBA) among its competitors. FibroGen may generate extra interest based on the fact none of the 55+ biotech IPOs this year have had Goldman Sachs as the lead underwriter.

The San Francisco, CA-based company, which was founded in 1993, plans to list on the NASDAQ, though it has not selected a ticker. FibroGen initially filed confidentially on June 11, 2014. Goldman Sachs, Citi and Leerink Partners are the joint bookrunners on the deal. No pricing terms were disclosed.