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By Ben Hirschler
LONDON, July 31 (Reuters) - AstraZeneca took anotherstep to bolster its new drug pipeline on Wednesday by striking adeal with U.S. biotech firm FibroGen potentially worth more than$815 million for rights to an experimental anaemia drug.
The medicine, known as FG-4592, is given as a pill and isthe first of a new kind of treatment designed to boostproduction of red blood cells by making the body think it is athigh altitude.
Researchers believe such drugs could create a major newmarket in treating anaemia and other serious conditions,including circulatory problems and wound damage.
They may also attract unscrupulous athletes seeking a handyoral alternative to injections of the blood enhancer EPO, orerythropoietin, which has become a byword for doping in cycling.
Pascal Soriot, AstraZeneca's new chief executive who is on amission to rebuild its drug pipeline following past setbacks andwave of patent expiries, said the science behind the new drugwas compelling.
It also fits with the goal of Britain's second biggestdrugmaker - which will report second-quarter results on Thursday- to build up its late-stage portfolio of therapies forcardiovascular and metabolic diseases.
AstraZeneca will pay $350 million upfront and in subsequentnon-contingent payments, plus future development-relatedmilestone payments of up to $465 million, for rights to FG-4592in the United States, China and certain other markets.
There may be additional payments if use of the drug isexpanded beyond the initial target of treating anaemia inpatients with chronic kidney disease (CKD) and end-stage renaldisease (ESRD). FibroGen will get tiered royalties on futuresales in the low 20 percentage points range.
Japan's Astellas Pharma already has rights to themedicine in Japan, Europe, the Commonwealth of IndependentStates, the Middle East and South Africa after signing a dealwith unlisted FibroGen in 2006.
FG-4592 has shown promising results in mid-stage Phase IIclinical trials and AstraZeneca said it anticipated regulatoryfilings in China in 2015 and in the United States in 2017 oncefinal Phase III tests are completed.
GlaxoSmithKline is also testing a similar drug inPhase II and GSK's Chief Executive Andrew Witty earlier thisyear described its medicine as one of the most promising in hiscompany's pipeline.
GSK's drug is behind the FibroGen product in development,however, as is another rival pill from private U.S. companyAkebia Therapeutics that is also in Phase II.
The new drugs mimic the body's response to hypoxia, or lowoxygen levels, by increasing the natural production of EPO inthe kidneys through inhibiting a protein calledhypoxia-inducible factor (HIF).
