FibroGen (NASDAQ: FGEN) completes $220 million sale of China unit to AstraZeneca

FibroGen Inc. (NASDAQ: FGEN) completed the sale of its China subsidiary to AstraZeneca for approximately $220 million, the company announced September 2. The transaction consisted of $85 million in enterprise value and approximately $135 million in net cash held in China.

The sale price represents a $60 million increase from initial guidance provided by the biotechnology company. FibroGen used proceeds to repay its term loan facility to investment funds managed by Morgan Stanley Tactical Value for approximately $81 million.

The transaction extends FibroGen’s cash runway into 2028, according to the company statement. All closing conditions were fulfilled prior to completion of the sale.

FibroGen retains rights to roxadustat in the United States and markets not licensed to Astellas, excluding China and South Korea. The company plans to file a Phase 3 clinical trial protocol for roxadustat to treat anemia in patients with lower-risk myelodysplastic syndrome in the fourth quarter of 2025, following discussions with the FDA.

The company remains on schedule to begin a Phase 2 trial of FG-3246 for metastatic castration-resistant prostate cancer in the third quarter of 2025. FG-3246 is an antibody-drug conjugate targeting CD46.

BofA Securities served as exclusive financial advisor to FibroGen on the transaction, while Ropes & Gray provided legal counsel.