FibroGen, a Nasdaq-listed biopharmaceutical company, has agreed to sell its China subsidiary to AstraZeneca for approximately $160m.
The transaction, which includes an enterprise value of $85m and an estimated $75m in net cash, is expected to close by mid-2025, pending regulatory approval in China.
As part of the deal, AstraZeneca will take over all rights to roxadustat in China.
The drug has approval in China, Europe, Japan, and other regions as a treatment for anaemia in chronic kidney disease, is awaiting a regulatory decision for use in chemotherapy-induced anaemia.
FibroGen said that it will retain its rights to roxadustat in the US and other territories not covered by its licensing agreement with Astellas.
The company is also evaluating the drug’s potential for treating anaemia associated with lower-risk myelodysplastic syndrome (LR-MDS) and has scheduled a meeting with the US Food and Drug Administration (FDA) in Q2 2025 to discuss its development strategy.
FibroGen CEO Thane Wettig said: “Today, we announced the sale of FibroGen China to AstraZeneca, our long-time strategic partner for roxadustat in China, bolstering our company on several fronts.
“It strengthens our financial position, meaningfully extending our cash runway into 2027, and enables us to continue progressing the clinical development programme for FG-3246, our first-in-class, CD46 targeting antibody drug conjugate, and FG-3180, our companion PET imaging agent, in mCRPC.”
Following the completion of the transaction, FibroGen plans to use the proceeds to repay its term loan facility with investment funds managed by Morgan Stanley Tactical Value. The company expects this move to simplify its capital structure and extend its cash runway into 2027.
As of 31 December 2024, FibroGen reported preliminary unaudited cash, cash equivalents, and accounts receivable totalling $121.1m.
BofA Securities acted as FibroGen’s exclusive financial adviser for the transaction, with Ropes & Gray providing legal counsel.
