Insider Buying

Insider Buying Report: FibroGen Inc (FGEN:US)

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FibroGen Inc
FGEN:US
12 months:
-8%
Activity:
Bullish
Pattern:
Multiple purchases from CEO
News:
Announced initiation of COVID-19 study
FibroGen Inc
FGEN:US
12 months:
-8%
Activity:
Bullish
Pattern:
Multiple purchases from CEO
News:
Announced initiation of COVID-19 study

FibroGen is a science-based biopharmaceutical company that is dedicated to creating first-class medicines that treat chronic and life-threatening conditions. The company’s most advanced product candidate, Roxadustat, is a therapeutic aimed at treating anaemia. FibroGen is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $3.5 billion.

FibroGen recently announced that it has commenced a study investigating the efficacy and safety of its pamrevlumab antibody on patients with severe cases of Covid-19. Pamrevlumab is an antibody developed by FibroGen designed to inhibit the activity of connective tissue growth factor (CTGF), a common factor in fibrotic and proliferative disorders characterised by persistent and excessive scarring that can lead to organ dysfunction and failure. The trial will assess pamrevlumab’s effect on patient time to and on ventilatory support, and its potential to reduce mortality associated with Covid-19.

FGEN-US-chartSource 2iQ Research

What looks interesting to us about FibroGen is the fact that CEO Enrique Conterno – who joined the company as CEO in January – has recently purchased his first FGEN shares. On 10 June, the insider purchased 8,000 FGEN shares, and then on 11 June, he added another 19,800 shares. Combined, these purchases cost the insider a total of around $990,000. This represented the largest amount of insider buying at FibroGen in over two years. We view these insider purchases as a bullish signal. They suggest that Conterno is confident about the future and expects the stock to rise.

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