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

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.

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 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.

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.