FibroGen (NASDAQ:FGEN) layoffs are in the news Wednesday after the biopharmaceutical company announced plans to cut jobs after failed clinical trials.
FibroGen says that it is going into a cost-saving mode that will result in layoffs for 75% of its U.S. employees. This comes as it ends its pamrevlumab development program due to poor results.
Here’s what it said about this in a press release.
“The pamrevlumab development program will be terminated and the Company plans to expeditiously wind down any remaining pamrevlumab obligations. As a result of the cost reduction plan, headcount in the U.S. will be reduced by approximately 75%.”
FibroGen Layoffs Reasons
FibroGen posted results from two clinical trials of pamrevlumab. One of these was a Phase 2/3 trial and the other was a Phase 3 trial. In both cases, the trials failed to meet their primary endpoints of overall survival.
With this news comes heavy trading of FGEN stock as traders sell their shares. That has more than 5.8 million units on the move as of this writing. To put that number in perspective, the daily average trading volume for FibroGen shares is roughly 2.8 million.
FGEN stock is down 50.6% as of Wednesday morning. The stock is currently down 36.7% since the start of the year.
Investors will want to stick around for even more stock market news today!
We have all of the hottest stock market stories traders need to know about on Wednesday! A few examples include cloud troubles at Microsoft (NASDAQ:MSFT), layoffs at Match Group (NASDAQ:MTCH) and Boeing (NYSE:BA) getting a new CEO. All of this news is ready to go at the links below!
More Stock Market News for Wednesday
- MSFT Stock Falls as Microsoft Cloud Revenue Disappoints. What’s Going On?
- Match Group Layoffs 2024: What to Know About the Latest MTCH Job Cuts
- Can New CEO Kelly Ortberg Save Boeing (BA) Stock?
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
