Balance Sheet Components

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

6.	Balance Sheet Components

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Cash	$	90,899	$	88,046
Commercial paper		12,000		—
Money market funds		171,628		590,347
Total cash and cash equivalents	$	274,527	$	678,393

At September 30, 2021 and December 31, 2020, a total of $77.4 million and $66.0 million, respectively, of the Company’s cash and cash equivalents were held outside of the U.S. in its foreign subsidiaries to be used primarily for its China operations.

Investments

The Company’s investments consist of available-for-sale debt investments and marketable equity investments. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s investments by major investments type are summarized in the tables below (in thousands):

	September 30, 2021
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
Corporate bonds	$	127,005	$	35	$	(46	)	$	126,994
Commercial paper		95,402		—		—			95,402
U.S. government bonds		73,119		5		(16	)		73,108
Agency bonds		23,399		4		(4	)		23,399
Asset-backed securities		27,261		2		(7	)		27,256
Foreign government bonds		8,127		—		—			8,127
Equity investments		118		107		—			225
Total investments	$	354,431	$	153	$	(73	)	$	354,511

	December 31, 2020
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
Bond and mutual funds	$	8,147	$	—	$	(3	)	$	8,144
Equity investments		125		119		—			244
Total investments	$	8,272	$	119	$	(3	)	$	8,388

At September 30, 2021, the available-for-sale investments had contractual maturities range from several months to two years. During the three and nine months ended September 30, 2021 and 2020, the Company did not recognize any other-than-temporary impairment loss.

Inventories

Inventories consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Raw materials	$	820	$	2,303
Work-in-progress		20,662		8,114
Finished goods		7,833		6,113
Total inventories	$	29,315	$	16,530

The Company capitalizes inventory costs for FibroGen Beijing’s production of roxadustat for commercial sales purposes. The Company started capitalizing inventory costs in the U.S. in the second quarter of 2020 prior to regulatory approvals in the U.S., Europe and other territories. As of September 30, 2021 and December 31, 2020, inventory capitalized in the U.S. was 40% and 29% of the total inventory balance, respectively, which will be used for commercial launches in Europe and other territories where the Company has received regulatory approvals. The provision to write-down excess and obsolete inventory was immaterial for three and nine months ended September 30, 2021 and 2020.

Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following (in thousands):

	September 30, 2021			December 31, 2020
Unbilled contract assets	$	15,003		$	2,147
Deferred revenues from associated contracts		(7,003	)		(2,147	)
Net unbilled contract assets		8,000			—
Prepaid assets		6,598			8,353
Other current assets		7,090			1,807
Total prepaid expenses and other current assets	$	21,688		$	10,160

The unbilled contract assets as of September 30, 2021 included the $8.0 million unbilled upfront license payment under the Eluminex Agreement, and $7.0 million related to unbilled co-development revenue under the China Amendment with AstraZeneca. The unbilled contract assets as of December 31, 2020 were related to unbilled co-development revenue under the China Amendment with AstraZeneca. See Note 2, Collaboration Agreements, License Agreement and Revenues, for details.

Property and Equipment

Property and equipment consisted of the following (in thousands):

	September 30, 2021			December 31, 2020
Leasehold improvements	$	102,843		$	102,006
Laboratory equipment		18,809			18,143
Machinery		8,234			8,312
Computer equipment		9,262			9,545
Furniture and fixtures		6,175			6,128
Construction in progress		1,920			760
Total property and equipment	$	147,243		$	144,894
Less: accumulated depreciation		(118,191	)		(111,247	)
Property and equipment, net	$	29,052		$	33,647

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Preclinical and clinical trial accruals	$	64,212	$	44,113
Payroll and related accruals		20,121		22,800
Contract liabilities to pharmaceutical distributors		10,335		15,137
Accrued co-promotion expenses - current		27,071		11,537
Roxadustat profit share to AstraZeneca		7,764		7,007
Property taxes and other taxes		11,532		5,970
Professional services		4,565		4,869
Other		5,746		6,900
Total accrued and other current liabilities	$	151,346	$	118,333

The profit share liability to AstraZeneca as of September 30, 2021 and December 31, 2020 was $7.8 million and $7.0 million, respectively, which represented the profit/loss share between FibroGen Beijing and AstraZeneca that was calculated for the interim period pursuant to the China Amendment. This liability correspondingly reduced the deferred revenue related to the performance obligation in accordance with the China Amendment.

Other Long-term Liabilities

Other long-term liabilities consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Accrued long-term co-promotion expenses	$	13,514	$	27,424
Other long-term tax liabilities		9,120		8,675
Other		1,688		2,690
Total other long-term liabilities	$	24,322	$	38,789