AstraZeneca signs collaboration deal with Fibrogen to develop anemia drug

AstraZeneca (AZN +0.9%) inks a collaboration deal to develop an oral anemia drug with privately held U.S. biotechnology company FibroGen that could potentially be worth more than $815M.

The collaboration includes the development and commercialization of FG-4592, a drug that mimics the body's response to being at high altitude, which stimulates production of red blood cells and would be used to treat anemia.

AZN's is making an initial $350M payment to FibroGen, will could rise to as much as $815M if development milestones are reached, and possibly even exceed that with royalty payments on future sales in the low 20% range.

AZN has made $2.8B worth of acquisition and collaboration deals in the last six months alone in a bid to counteract the revenue-sapping effect of generic competition.

The deal is limited to the U.S., China and a few other markets, but excludes Europe, Japan and other markets where FibroGen already has an agreement with Astellas Pharma (ALPMY.PK).

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs