08:29 AM EST, 02/20/2025 (MT Newswires) -- FibroGen ( FGEN ) said Thursday it has agreed to sell its China subsidiary to AstraZeneca ( AZN ) for about $160 million.

Under the deal, the company will receive an enterprise value of $85 million plus FibroGen ( FGEN ) net cash held in China at closing, currently estimated to be about $75 million, totalling about $160 million.

The transaction is expected to close by mid-2025, pending customary closing conditions, including regulatory review in China.

Upon closing, AstraZeneca ( AZN ) will obtain all rights to anemia drug roxadustat in China. Roxadustat is for the treatment of anemia in chronic kidney disease, with a pending regulatory decision for chemotherapy-induced anemia.

FibroGen ( FGEN ) said it maintains its rights to roxadustat in the US and in all markets not licensed to Astellas Pharma.

Upon the close of the transaction, FibroGen ( FGEN ) plans to repay its term loan facility to investment funds managed by Morgan Stanley Tactical Value. The combined transactions are expected to extend the company's cash runway into 2027, it said.