AstraZeneca buys FibroGen’s China subsidiary for US$160M, securing Roxadustat

CHINA—AstraZeneca, the British-Swedish pharmaceutical giant, has agreed to acquire FibroGen’s China subsidiary for approximately US$160 million.

This strategic move gives AstraZeneca full control over the anaemia drug roxadustat in China, a market that has become increasingly vital for the company’s growth.

With regulatory approvals still pending, the transaction is expected to be completed by mid-2025.

Following the announcement on February 20, FibroGen’s stock price surged by 42%, highlighting the market’s positive reception to the deal.

The proceeds from the sale are set to be used by FibroGen to repay a term loan from Morgan Stanley Tactical Value and to extend the company’s cash runway into 2027. This financial boost comes at a crucial time as FibroGen recalibrates its focus amid other business challenges.

AstraZeneca and FibroGen have been collaborating on roxadustat since 2013, and the drug is marketed under the brand name Evrenzo in China.

It was approved by Chinese regulators in 2018 for the treatment of anemia in patients with chronic kidney disease.

In 2023, roxadustat achieved impressive sales of $284 million, representing a 36% increase compared to the previous year.

 This success highlights the drug’s significance in the local market and indicates the potential for further growth now that AstraZeneca has full control.

This agreement follows AstraZeneca’s departure from most of its U.S. collaborations with FibroGen last year.

Despite this shift in their North American strategy, the companies have maintained a strong partnership in China and South Korea, where roxadustat continues to lead the chronic kidney disease-related anaemia market.

Roxadustat has faced challenges in obtaining U.S. approval, as the U.S. Food and Drug Administration rejected the drug in August 2021 due to the necessity for further studies.

Although the companies continued with the Phase III MATTERHORN study, in May 2023, the drug failed to show sufficient efficacy in anaemia patients with myelodysplastic syndromes.

FibroGen retains the U.S. rights to roxadustat and plans to meet with the FDA in the second quarter of 2025 to discuss future steps. In some markets, including Japan, Astellas holds the licensing rights.

FibroGen’s CEO, Thane Wettig, highlighted that this transaction will enhance the company’s financial stability, allowing it to focus on developing other promising therapies.

These include FG-3246, a CD46-targeting antibody-drug conjugate, and FG-3180, a companion PET imaging agent for metastatic castration-resistant prostate cancer.

At the same time, AstraZeneca is broadening its presence in China through other initiatives, including a 2023 partnership with Eccogene for obesity treatments and a US$1.2 billion deal to acquire Gracell Biotechnologies to enhance its CAR-T cell therapy portfolio. However, the acquisition coincides with legal challenges for AstraZeneca in China.

The company is currently under investigation for alleged unpaid import taxes on several cancer drugs, and some executives have faced detentions amid these allegations.

Despite these hurdles, AstraZeneca remains fully cooperative with Chinese authorities, reaffirming its commitment to its expansion strategy in this critical market.

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