FibroGen has entered into a definitive agreement to sell its China operations to long-time strategic partner AstraZeneca in a deal valued at approximately $160 million, marking a significant shift in the company's strategic focus and financial positioning.
The transaction structure includes an enterprise value of $85 million plus FibroGen's net cash holdings in China, estimated at approximately $75 million. The deal, expected to close by mid-2025 subject to regulatory approvals in China, will significantly strengthen FibroGen's financial position.
Strategic Implications and Financial Impact
"Today's announcement bolsters our company on several fronts," said Thane Wettig, Chief Executive Officer of FibroGen. "It strengthens our financial position, meaningfully extending our cash runway into 2027, and enables us to continue progressing the clinical development program for FG-3246, our first-in-class, CD46 targeting antibody drug conjugate."
Following the transaction's completion, FibroGen will repay its term loan facility to Morgan Stanley Tactical Value, simplifying the company's capital structure. The company reported preliminary unaudited cash, cash equivalents, and accounts receivable of $121.1 million as of December 31, 2024.
Roxadustat Rights and Market Position
The deal transfers all rights to roxadustat in China to AstraZeneca. The drug currently holds the position of category leader in brand value share for treating anemia in chronic kidney disease patients. A regulatory decision for its use in chemotherapy-induced anemia is pending.
FibroGen will retain roxadustat rights in the U.S. and markets not licensed to Astellas. The company plans to meet with the FDA in the second quarter of 2025 to discuss potential development pathways for roxadustat in anemia associated with lower-risk myelodysplastic syndrome (LR-MDS).
Pipeline Development Focus
With the strengthened financial position, FibroGen will advance its oncology pipeline, particularly:
- FG-3246: A first-in-class antibody-drug conjugate targeting CD46
- FG-3180: A companion PET imaging agent
The Phase 2 monotherapy trial of FG-3246 in metastatic castration-resistant prostate cancer (mCRPC) is scheduled to begin in the second quarter of 2025.
BofA Securities, Inc. is serving as the exclusive financial advisor for the transaction, with Ropes & Gray LLP providing legal counsel to FibroGen.
