Biotech Stock Falls on Late-Stage Study

FibroGen's neuromuscular disorder therapy failed to meet expectations

Laura McCandless

Deputy Editor

Jun 7, 2023 at 10:29 AM

fgen

FibroGen Inc (NASDAQ:FGEN) stock is sliding today, after the biotech company announced disappointing results from a late-stage trial of pamrevlumab, its experimental drug to treat patients with Duchenne muscular dystrophy. At last glance, FGEN was down 9% to trade at $17.02.

The stock's 80-day moving average kept a cap on gains the last couple sessions, and the stock is now back below the $18 level, which provided a firm line of pressure for most of May. Year-over-year, the equity is up about 65%.

It's also worth noting that short interest represents 6.2% of the stock's available float. It would take shorts over six days to cover their bets, at FGEN's average pace of trading.

Short-term options traders have been much more bearish than usual, per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.20, which sits in the 100th percentile of readings from the past 12 months.

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