FibroGen gains after company plans to cut about 32% jobs in US

Kyntra Bio

19/07/2023 14:12

** Shares of drugmaker FibroGen  FGEN.O  up 1.5% at $2.60
premarket    
    ** Company to reduce U.S. workforce by ~32%, or 104
employees, as part of a restructuring plan, according to a
regulatory filing  
    ** FGEN estimates it will incur non-recurring charges in the
range of $13 mln-$15 mln related to restructuring plan, expects
that majority of charges to be incurred in Q3 of fiscal year
2023
    ** Company expects that implementation of headcount
reductions, including cash payments, will be substantially
complete by end of Q1 next year
    ** FGEN's restructuring plan follows a series of setbacks in
its clinical trials in the recent months
    ** As of last close, stock down 84% this year

 (Reporting by Raghav Mahobe)
 ((Raghav.Mahobe@thomsonreuters.com;))