FibroGen Sells Rimantadine Rights to Eton for $10M

TL;DR

FibroGen cashes out $10M for Rimantadine rights, Eton buys.

AI Summary

FibroGen, Inc. reported on August 2, 2024, that it has entered into a definitive agreement to sell its U.S. rights to Rimantadine Hydrochloride to Eton Pharmaceuticals, Inc. for an upfront payment of $10 million. The agreement also includes potential milestone payments and royalties on future sales.

Why It Matters

This transaction allows FibroGen to divest a non-core asset, generating immediate cash, while Eton gains a product to expand its portfolio.

Risk Assessment

Risk Level: low — The filing is a straightforward asset sale agreement with a known counterparty and clear financial terms.

Key Numbers

• $10.0M — Upfront Payment (Cash received by FibroGen from Eton for U.S. rights to Rimantadine Hydrochloride.)

Key Players & Entities

• FibroGen, Inc. (company) — Seller of rights
• Eton Pharmaceuticals, Inc. (company) — Buyer of rights
• Rimantadine Hydrochloride (product) — Asset being sold
• $10 million (dollar_amount) — Upfront payment
• August 02, 2024 (date) — Date of agreement

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value FGEN The Nasdaq Global Se
• $16 — r non-recurring charges in the range of $16-18 million in connection with the Plan,

Filing Documents

• fgen-20240802.htm (8-K) — 38KB
• 0000950170-24-092967.txt ( ) — 146KB
• fgen-20240802.xsd (EX-101.SCH) — 23KB
• fgen-20240802_htm.xml (XML) — 4KB

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On August 2, 2024, FibroGen, Inc. (the "Company") initiated a restructuring plan (the "Plan") to lower the Company's operating expenses in light of the negative pamrevlumab clinical trial data announced earlier that week. The Plan includes an expected reduction to the Company's U.S. workforce of approximately 75% with 127 U.S. employees noticed on August 2, 2024. The Company would like to extend its tremendous gratitude to these employees, not only for their contributions to the strong workforce and culture at FibroGen, but to their large part in the progress we have made, and continue to make, in science and the biotechnology industry. The Company estimates that it will incur non-recurring charges in the range of $16-18 million in connection with the Plan, primarily consisting of severance payments, notice pay, accrued vacation, payroll tax and employee benefits contributions. The Company expects that the majority of the restructuring charges will be incurred in the second half of 2024 and that the implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the first quarter of 2025. Potential position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond the first quarter of 2025 in certain cases. The charges that the Company expects to incur, and the savings obtained, are subject to a number of assumptions, including legal requirements in various jurisdictions, and actual expenses and savings may differ materially from the estimates disclosed above. The Company may incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the reduction. Note Regarding Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933 and S

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FIBROGEN, INC. Date: August 7, 2024 By: /s/ Michael Lowenstein Michael Lowenstein Chief Legal Officer

View Full Filing

View this 8-K filing on SEC EDGAR