AstraZeneca expands in China with US $160M FibroGen deal

CHINA – AstraZeneca has announced a US $160 million deal to acquire FibroGen’s operations in China, securing full control of their jointly developed drug, roxadustat.

The medication, which is already approved for anemia in chronic kidney disease (CKD) in China, is also under regulatory review for chemotherapy-induced anemia.

The agreement, revealed on Thursday, includes US $85 million for FibroGen China’s enterprise value and approximately US $75 million in net cash held by the subsidiary.

The deal is expected to close by mid-2025, marking another step in AstraZeneca’s continued expansion in China, despite ongoing investigations involving its executives.

Roxadustat’s journey and AstraZeneca’s role

AstraZeneca and FibroGen have been co-marketing roxadustat in China since 2018, following a 2013 partnership that also gave AstraZeneca marketing rights in the United States.

The drug was initially approved for renal anemia in dialysis patients, but its path in the US market has been challenging.

In 2021, the FDA rejected roxadustat for CKD-related anemia due to safety concerns. As a result, AstraZeneca returned its US rights for the drug to FibroGen in 2023.

Under the new agreement, FibroGen will retain its rights to roxadustat in the US and other markets not licensed to Astellas, which sells the drug as Evrenzo in Europe.

Additionally, FibroGen plans to explore roxadustat’s potential in treating anemia linked to lower-risk myelodysplastic syndrome.

AstraZeneca’s growing investment in China

China plays a major role in AstraZeneca’s global strategy, contributing around 12% of its total revenue last year.

The company has been aggressively expanding in the region, acquiring Gracell Biotechnologies for up to US $1.2 billion and securing partnerships with Chinese drugmakers like Allorion Therapeutics, Yousen Jianheng Biopharmaceutical, and Eccogene.

However, AstraZeneca is currently facing an ongoing investigation by Chinese authorities related to suspected unpaid import taxes on two cancer drugs.

While details remain unclear, the company acknowledged the probe earlier this month, stating it involves current and former employees.

FibroGen’s focus on oncology

For FibroGen, selling its China unit provides financial relief, extending its cash reserves into 2027 and allowing the company to focus on its oncology pipeline.

A key project is FG-3246, a CD46-targeting antibody-drug conjugate for metastatic castration-resistant prostate cancer (mCRPC), with a Phase II trial set to begin in Q2.

Additionally, FibroGen is working on FG-3180, a PET imaging agent designed to complement FG-3246 in prostate cancer treatment.

Explaining the decision, FibroGen CEO Thane Wettig stated, “After a thorough evaluation of alternatives, we believe selling our China operations and repaying our term loan is in the best interest of FibroGen’s stakeholders.”