Novo integrates Akero’s experimental drug under a billion-dollar deal

Image Credit: ET Pharma

Announcement 

Novo Nordisk will acquire Akero Therapeutics for $5.2 billion, marking Novo as the latest major pharmaceutical company to enter a rapidly growing area in liver disease that has seen numerous high-profile deals emerge so far. With this acquisition, Novo will integrate Akero’s experimental drug for curing metabolic dysfunction-associated steatohepatitis (MASH), efruxifermin, into its MASH portfolio. This involves WeGovy after GLP-1 achieved an FDA nod in the signalling earlier this year.

The Danish pharma is granting $54 per share in cash figure at closing cost, a contingent value right offering $6 per share to shareholders after the US green signals metabolic dysfunction-associated steatohepatitis (MASH) therapy efruxifermin expected by 30^th June 2031. This means $4.7 billion upfront payment and a premium worth 19% on the standard biotech’s average share cost. The deal has been confirmed by Akero’s board and is predicted to finish by the year-end.

Akero’s potency

Akero has made history with its data projection of efruxifermin that showed a 24% benefit in mitigating fibrosis of the liver in comparison with placebo. One of the analysts at Jefferies titled the result as a ‘home run’ that safeguarded the asset. Akero’s shares rose to 115%. The results were so impressive that Roche started searching for a similar asset. Akero was entitled in the current regulatory documents based on the company’s $3.5 billion buyout of 89bio. Considered that it has in common the FGF21 analog known as pegozafermin. Over six companies showed interest in exercising a deal with 89bio. Novo will begin establishing efruxifermin, specifying the drug via the phase 3 SYNCHRONY trial. The therapy will be integrated into the approved Novo’s Wegovy.

To this acquisition and akero’s potential, BMO Capital Markets called this collaboration a ‘clean pipeline fit’ for Novo, seeing the WeGovy’s approval and Novo’s previous halt of a FGF21 program. Akero has the potential to be involved in the novo’s targeted metabolic disorders fueled by its leading semaglutide franchise. The company has risen to global significance, possibly in all due to the weight loss drug Wegovy. Though sales are meagre and Novo’s pipeline has found it a bit difficult in series. The new CEO, Maziar Mike Doustdar, is now looking after a crucial restructuring.

BMO’s analyst said, “We see this deal best integrated with the current internal restructuring at Novo, effectively as doustdar is working on it thoroughly.”