Novo Nordisk (NYSE:NVO) announced it is acquiring Akero Therapeutics (NASDAQ: AKRO) for a potential total of up to $5.2 billion, strengthening its pipeline in metabolic diseases.
Under the terms of the agreement, Novo Nordisk will pay $54 per share in cash, valuing Akero at approximately $4.7 billion upfront.
Akero shareholders will also receive a contingent value right (CVR) worth an additional $6 per share, or about $500 million, if the company’s lead drug candidate, efruxifermin (EFX), secures full US regulatory approval for the treatment of compensated cirrhosis due to metabolic dysfunction-associated steatohepatitis (MASH) by June 2031.
Efruxifermin, a fibroblast growth factor 21 (FGF21) analogue, is currently in Phase 3 development and is considered a potentially best-in-class therapy for MASH, a serious liver disease closely linked to obesity and metabolic disorders.
The drug is the only treatment to have demonstrated significant fibrosis regression in Phase 2 studies among patients with compensated cirrhosis (F4 stage).
Novo Nordisk said the acquisition aligns with its strategy to expand its portfolio addressing obesity-related comorbidities and metabolic diseases.
With over 80% of MASH patients living with obesity and more than 40% also diagnosed with type 2 diabetes, the condition is seen as complementary to the company’s existing expertise in metabolic health.
“MASH destroys lives silently - and efruxifermin has the potential to change that by reversing liver damage,” Novo Nordisk CEO Mike Doustdar said in a statement.
“If approved, we believe it could become a cornerstone therapy, alone or together with Wegovy (semaglutide), to tackle one of the fastest-growing metabolic diseases of our time.
Shares of Novo Nordisk were little changed on the announcement, while shares of Akero surged almost 18% to about $54.50.