AstraZeneca will buy longtime partner FibroGen's China unit for about $160 million to gain rights to its anemia drug in the country, further boosting its presence in the world's second-biggest economy.

AstraZeneca will gain full rights for roxadustat in China where it is approved to treat anaemia seen with chronic kidney disease.

The $160 million acquisition of a FibroGen subsidiary expands AstraZeneca’s foothold in China while the company works through government investigations into its business practices there.

AstraZeneca is paying $160 million for FibroGen’s China business, giving the U.K.-based Big Pharma the regional rights to oral anemia drug roxadustat.

FibroGen sells its China unit to AstraZeneca for $160 million, extending its cash runway into 2027 and advancing its CD46-targeting ADC and PET imaging agent.

AstraZeneca will obtain the full rights to Roxadustat in China, FibroGen said, adding that it will retain the US and other unlicensed market rights and continue to evaluate a development plan for the drug in anemia associated with lower-risk myelodysplastic syndrome.

FibroGen today announced the sale of its China subsidiary to UK pharma major AstraZeneca for around $160 million, with the news sending the California-based company’s shares soaring 27% to $0.71.

AstraZeneca will buy U.S. biotech firm FibroGen's China unit for about $160 million, in its latest deal to boost its presence in the country despite growing US-China trade tensions. Fibrogen said the deal will give AstraZeneca full rights to its anemia drug roxadustat in China.