FibroGen Inc. ( FGEN ) stock is trading higher on Thursday. The company announced the sale of its China subsidiary to AstraZeneca Plc ( AZN ) for approximately $160 million.

“Today, we announced the sale of FibroGen China to AstraZeneca ( AZN ), our long-time strategic partner for roxadustat in China, bolstering our company on several fronts. 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, and FG-3180, our companion PET imaging agent, in mCRPC,” said Thane Wettig, Chief Executive Officer of FibroGen ( FGEN ).

Also Read: AstraZeneca Aims to Restore Trust With New Leadership in China Amid Scandal and Sales Decline

FibroGen ( FGEN ) will receive an enterprise value of $85 million plus FibroGen ( FGEN ) net cash in China at closing, estimated to be approximately $75 million, totaling roughly $160 million. The transaction is expected to close by mid-2025.

AstraZeneca ( AZN ) will obtain all rights to roxadustat for anemia in chronic kidney disease in China. A regulatory decision for chemotherapy-induced anemia is pending.

FibroGen ( FGEN ) maintains its rights to roxadustat in the U.S. and in all markets not licensed to Astellas. The company continues to evaluate a development plan for roxadustat in anemia associated with lower-risk myelodysplastic syndrome.

The company is planning for an FDA meeting in the second quarter of 2025 to determine the potential next steps for the development program for roxadustat in the U.S.

In relation to the illegal drug importation allegations, in January 2025, AstraZeneca ( AZN ) received a Notice of Transfer to the Prosecutor and an Appraisal Opinion from the Shenzhen City Customs Office regarding suspected unpaid importation taxes amounting to $0.9 million, referred to in the Appraisal Opinion relate to cancer drugs, Imfinzi and Imjudo.

A fine of one and five times unpaid importation taxes may also be levied if AstraZeneca ( AZN ) is found liable (amounting to around $0.9 million to $4.5 million). Reuters notes the update reassures analysts and investors that the business impact would be minor.

AstraZeneca’s China sales fell 1% on a reported basis to $1.36 billion (-3% at CER).

Price Action: FGEN stock is up 21.6% at $0.68 at last check Thursday.

Read Next:

Southern Company Q4: Utility Growth Boosts Revenue, But Rising Costs Weigh on Profit

Image by Robert Way via Shutterstock