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


	September 30, 2024		December 31, 2023
Cash	$	56,176	$	63,396
Commercial paper		25,631		36,016
Money market funds		49,196		12,288
U.S. government bonds		—		1,988
Total cash and cash equivalents	$	131,003	$	113,688

At September 30, 2024 and December 31, 2023, a total of $51.0 million and $32.2 million 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, respectively.

The Company did not have any short-term or long-term investments as of September 30, 2024. As of December 31, 2023, the Company’s investments consist primarily of available-for-sale debt investments, and 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):


	December 31, 2023
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Corporate bonds	$	13,988	$	9	$	(5	)	$	13,992
Commercial paper		52,273		—		—			52,273
U.S. government bonds		45,783		20		—			45,803
Agency bonds		9,830		1		(1	)		9,830
Total investments	$	121,874	$	30	$	(6	)	$	121,898

The following table summarizes, for all available for sale securities in an unrealized loss position as of December 31, 2023, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position (in thousands):


	December 31, 2023
	Less than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
Corporate bonds	$	—	$	—		$	3,495	$	(5	)	$	3,495	$	(5	)
U.S. government bonds		4,984		—			—		—			4,984		—
Agency bonds		4,987		(1	)		—		—			4,987		(1	)
Total	$	9,971	$	(1	)	$	3,495	$	(5	)	$	13,466	$	(6	)

The Company periodically assesses whether the unrealized losses on its available-for-sale investments were temporary. The Company considers factors such as the severity and the reason for the decline in value, the potential recovery period and its intent to sell. For debt securities, the Company also considers whether (i) it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. Based on the results of its review, the Company did not recognize any impairment for its available-for-sale investments during the three and nine months ended September 30, 2024 and 2023.

Inventories consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Raw materials	$	948	$	1,376
Work-in-progress		17,775		34,614
Finished goods		5,214		5,575
Total inventories	$	23,937	$	41,565

As described under Note 2, Collaboration Agreements, License Agreement and Revenues above, resulting from the AstraZeneca Termination and Transition Agreement related to the AstraZeneca U.S./RoW Agreement, the Company was reimbursed $12.6 million for work-in-progress inventory, which was written off and recognized as cost of goods sold during the three months ended March 31, 2024.

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


	September 30, 2024		December 31, 2023
Contract assets	$	25,804	$	26,481
Deferred revenues from associated contracts		—		(26,481	)
Net contract assets		25,804		—
Insurance proceeds receivable for litigation settlement		28,500		28,500
Prepaid assets		3,062		6,644
Other current assets		3,193		6,711
Total prepaid expenses and other current assets	$	60,559	$	41,855

Based on the arrangements under the settlement agreements entered in September 2024 between FibroGen China and AstraZeneca to settle certain historical items, the unbilled contract assets as of September 30, 2024 included $24.8 million of unbilled receivables from Falikang and $1.0 million of unbilled development revenue under the AstraZeneca China Amendment. Such amounts are no longer subject to right of offset under the settlement agreements.

The unbilled contract assets as of December 31, 2023 included $22.5 million of unbilled co-development revenue under the AstraZeneca China Amendment and the $4.0 million unbilled regulatory milestone payment under the AstraZeneca China Agreement, which were netted against the contract liabilities (deferred revenue) in the same contract. These amounts were billed during the three months ended September 30, 2024 under the above-mentioned settlement agreements.

As of each of September 30, 2024 and December 31, 2023, the Company recorded a $28.5 million receivable in prepaid expenses and other current assets, corresponding to the accrued litigation settlement of the same amount related to the Company’s agreement in principle with plaintiffs to settle the class action lawsuit. As the Company maintains insurance that covers exposure related to the class action lawsuit, this amount is fully recoverable under the Company’s insurance policies. The determination that the recorded receivables are probable of collection is based on the terms of the applicable insurance policies and communications with the insurers. See the Accrued and Other Current Liabilities section below, and the Legal Proceedings and Other Matters section in Note 11, Commitments and Contingencies, for details.

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


	September 30, 2024		December 31, 2023
Preclinical and clinical trial accruals	$	6,689	$	27,663
API and bulk drug product price true-up		12,592		50,978
Litigation settlement		28,500		28,500
Payroll and related accruals		6,144		20,267
Accrued restructuring charge		14,173		3,697
Inventory cost related		8,521		—
Accrued co-promotion expenses - current		53,714		10,309
Roxadustat profit share to AstraZeneca		—		7,084
Lease termination related		4,558		—
Value added taxes and other taxes		7,121		6,615
Professional services		4,396		7,103
Current portion of liability related to sale of future revenues		332		5,654
Other		4,401		5,021
Total accrued and other current liabilities	$	151,141	$	172,891

The accrued liabilities of $12.6 million and $51.0 million for API and bulk drug product price true-up as of September 30, 2024 and December 31, 2023, respectively, resulted from changes in estimated variable consideration associated with the API shipments fulfilled under the terms of the Astellas Japan Amendment, the bulk drug product transferred under the terms of the Astellas Europe Agreement and the Astellas EU Supply Agreement, and the bulk drug product shipments to AstraZeneca under the terms of the AstraZeneca Master Supply Agreement. During the second quarter of 2024, the Company paid $35.3 million to Astellas and $11.5 million to AstraZeneca related to accrued amounts. See the Drug Product Revenue, Net section in Note 2, Collaboration Agreements, License Agreement and Revenues, for details.

As of September 30, 2024 and December 31, 2023, the accrued litigation settlement of $28.5 million was related to the Company’s agreement in principle with plaintiffs to settle the class action lawsuit, as mentioned above. See the Legal Proceedings and Other Matters section in Note 11, Commitments and Contingencies, for details.

Responding to the reported results for pamrevlumab on July 30, 2024, the Company implemented an immediate and significant cost reduction plan in the U.S., including terminating pamrevlumab research and development investment and expeditiously wind down remaining obligations, and reducing U.S. workforce by approximately 75%. As a result, the Company recorded a total of $18.6 million non-recurring restructuring charge during the three months ended September 30, 2024, primarily consisting of notice period and severance payments, accrued vacation, and employee benefits contributions. During the three months ended September 30, 2024, total cash payments under the reduction in force was $6.1 million. The remaining accrued restructuring charge was $14.2 million as of September 30, 2024 and will be substantially paid out by early 2025.

The Company recorded an accrued inventory related cost of $8.5 million as of September 30, 2024, as part of the cost of goods sold resulting from the AstraZeneca Termination and Transition Agreement, discussed under Note 2, Collaboration Agreements, License Agreement and Revenues.

As of September 30, 2024, the Company included $42.4 million of historical co-promotion balances due to AstraZeneca based on the arrangements under the above-mentioned settlement agreements entered in September 2024 between FibroGen China and AstraZeneca, as such amounts are no longer subject to right of offset.