Akero Therapeutics Inc shares lost roughly two-thirds of their value Tuesday morning after the company released a disappointing update on its fatty liver disease treatment.
A study found that just 22% to 24% of the patients with compensated cirrhosis due to NASH (nonalcoholic steatohepatitis) who received Akero’s treatment efruxifermin saw at least a one-stage improvement in liver fibrosis, according to a statement.
Shares of Akero plummeted 68% to $15.57.
On the positive side, roughly 60% of patients who received efruxifermin had NASH resolution after 36 weeks, compared with 26% of those who received a placebo.
That represents, “the highest response rates reported to date for NASH resolution in this patient population,” the company said.
“We set a high bar with the primary endpoint after only 36 weeks of treatment,” CEO Andrew Cheng said in a statement. But efruxifermin “has the potential to show additional improvements for patients after the long-term follow-up period is complete” at week 96, he added.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel