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ibroGen is buying its way out of a large lease for its San Francisco headquarters and labs in Mission Bay due to significant job losses. The biotech firm will pay $10 million to landlord Alexandria Real Estate Equities to exit the 234,200-square-foot lease at 409 Illinois Street. This one-time payment covers past rent and a lease modification, allowing FibroGen to end its lease four years early, by the end of this year. Initially signed in 2006 for 15 years, the company had committed to making Mission Bay a biotech hub.

    FibroGen has faced significant financial struggles since its inception in 1993, losing $1.9 billion. This summer, it announced plans to cut over 300 jobs, or three-quarters of its U.S. workforce, after a key pancreatic cancer drug failed clinical trials. The company now focuses on developing a prostate cancer treatment and commercializing its approved chronic kidney disease medication.

    The pending vacancy at the Mission Bay offices comes amidst a national life sciences market glut. Last year, Alexandria sold over $700 million in non-core properties, and this quarter, the Bay Area's 41.5 million-square-foot life sciences market was 24.6 percent vacant, according to CBRE.