FibroGen sells China arm to AstraZeneca for $220mln.

FibroGen has completed the sale of its Chinese subsidiary, FibroGen China, to AstraZeneca for $220 million. The consideration includes $85 million in enterprise value and approximately $135 million in net cash held in China. The Company also repaid its senior secured term loan with Morgan Stanley Tactical Value for approximately $81 million.

FibroGen, Inc. (NASDAQ: FGEN) has completed the sale of its China subsidiary, FibroGen China, to AstraZeneca for approximately $220 million. The consideration includes $85 million in enterprise value and approximately $135 million in net cash held in China. Additionally, FibroGen repaid its senior secured term loan with Morgan Stanley Tactical Value for approximately $81 million [1].

The transaction marks a significant financial milestone for FibroGen, extending its cash runway into 2028. This sale will also simplify the company's capital structure and strengthen its financial position. The successful completion of the sale follows the fulfillment of all closing conditions [1].

FibroGen's Chief Executive Officer, Thane Wettig, expressed gratitude to the teams involved in the transaction and highlighted the transformative impact on the company's financial position. He noted that the rejuvenated capital structure will facilitate the commencement of the Phase 2 monotherapy trial of FG-3246 in metastatic castration-resistant prostate cancer (mCRPC) in the third quarter of 2025, as well as the submission of the Phase 3 protocol for roxadustat in anemia associated with lower-risk MDS in the fourth quarter of 2025 [1].

FibroGen maintains its rights to roxadustat in the U.S. and in all markets not licensed to Astellas (other than China and South Korea). Following a positive meeting with the U.S. Food and Drug Administration (FDA), the company intends to file the pivotal Phase 3 clinical trial protocol for roxadustat in the fourth quarter of 2025 [1].

The sale of FibroGen China to AstraZeneca is part of a broader strategy to focus on the development of its lead assets, including FG-3246 and its companion diagnostic FG-3180. These assets are in development for the treatment of metastatic castration-resistant prostate cancer and anemia associated with lower-risk MDS, respectively [1].

References:
[1] https://finance.yahoo.com/news/fibrogen-completes-sale-fibrogen-china-110000387.html