Japanese drugmaker Astellas Pharma and U.S.-based FibroGen have entered into an exclusive licensing agreement for FG-2216 and FG-4592, drug candidates for anemia developed by FibroGen. The drugs have the ability to increase the production of endogenous erythropoietin.

Under the agreement terms, Astellas will develop and market the drugs in Europe, the Middle East and South Africa. The company will make an up-front payment of $300 million and development milestone payments totaling $465 million, as well as purchasing newly-issued shares of FibroGen for $50 million, Astellas reported.

The two companies plan to test the drugs in Phase II trials for renal anemia this year. They also plan to launch trials for anemia associated with chemotherapy and cancerous anemia.

The two drugs will be available in Europe by 2012, said the comapnies.