The company, now based in North Beach, has lost more than $2 billion over 29 years. Its only approved drug, called roxadustat, is approved in China to treat anemia in chronic kidney disease patients but was rejected in 2021 by the Food and Drug Administration.

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.

(Reuters) -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.

By selling its China business to AstraZeneca, FibroGen can focus on developing a prostate cancer drug and potentially resuming development of roxadustat in another indication.

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.