FibroGen Sells FibroGen China to AstraZeneca for $160 Million

FibroGen, Inc., a biopharmaceutical company listed on NASDAQ under the ticker FGEN, has announced the strategic sale of its China subsidiary to AstraZeneca for approximately $160 million. This significant transaction marks a pivotal move in FibroGen's growth strategy, as it enhances the firm's financial stability and extends its cash runway into 2027. The sale is expected to close by mid-2025, subject to regulatory approvals in China.

The agreement involves an enterprise value of $85 million, with the remaining amount comprising FibroGen's net cash held in China, estimated at around $75 million. Upon completion of this transaction, FibroGen plans to repay its term loan facility from Morgan Stanley Tactical Value, which will simplify the company's capital structure. This strategic realignment allows FibroGen to focus more intently on its core operations and development programs.

Following the sale, AstraZeneca will gain all rights to roxadustat in China. Roxadustat is a leading treatment for anemia in chronic kidney disease, with its regulatory approval for chemotherapy-induced anemia currently pending. However, FibroGen retains its rights to roxadustat in the United States and regions not covered by its agreement with another partner, Astellas. The company is evaluating a development strategy for roxadustat in treating anemia associated with lower-risk myelodysplastic syndrome (LR-MDS), a condition with significant unmet medical needs. FibroGen plans to meet with the FDA in the second quarter of 2025 to discuss the potential next steps for roxadustat's development in the U.S.

In addition to the sale, FibroGen is making strides in its oncology pipeline. The company is advancing its lead asset, FG-3246, a pioneering antibody-drug conjugate targeting CD46, along with FG-3180, its companion PET imaging agent. A Phase 2 monotherapy trial for FG-3246 in patients with metastatic castration-resistant prostate cancer (mCRPC) is scheduled to begin in the second quarter of 2025, highlighting FibroGen's commitment to innovative cancer therapies.

Thane Wettig, the Chief Executive Officer of FibroGen, emphasized the benefits of this transaction, stating that it not only strengthens the company's financial position but also supports the continued advancement of its clinical development programs. Wettig expressed gratitude to the company's China team, especially Christine Chung, Head of China Operations, for their dedication to the successful commercialization of roxadustat in China.

BofA Securities, Inc. served as the exclusive financial advisor to FibroGen for this transaction, while Ropes & Gray LLP provided legal counsel. To discuss the details of the sale, FibroGen's management team hosted a conference call and webcast presentation, including a live Q&A session.

FibroGen, based in San Francisco, is renowned for its development of novel therapies in cancer biology and anemia. The company continues to explore new opportunities for its key products and pipeline assets, maintaining a focus on addressing areas with high unmet medical needs.

With this strategic sale and the extension of its cash runway, FibroGen is well-positioned to continue its development efforts and drive growth in its core therapeutic areas, marking a new chapter in its ongoing commitment to innovation and patient care.