Novo Nordisk to acquire Akero Therapeutics in $5.2 billion deal
Novo Nordisk announced on Thursday that it will acquire U.S.-based Akero Therapeutics for up to $5.2 billion, marking the Danish pharmaceutical giant’s first major acquisition under its new CEO.
The deal aims to strengthen Novo Nordisk’s pipeline with Akero’s promising experimental treatment for liver disease, as the company seeks to expand its growth beyond diabetes and obesity therapies, News.Az reports, citing Reuters.
Shares of Akero jumped more than 18% in premarket trading, while Novo's Denmark-listed shares were down nearly 2%.
The deal underscores new Novo Nordisk CEO Mike Doustdar's efforts to revive sales growth and fend off intense competition from U.S. rival Eli Lilly. Doustdar, who took over the reins in July, last month also announced the company would cut 9,000 jobs.
Akero is testing its drug, efruxifermin, in a late-stage trial of patients with severe liver scarring, or cirrhosis, due to a type of fatty liver disease known as metabolic dysfunction-associated steatohepatitis (MASH).
Efruxifermin could be a potential breakthrough in treatment of fatty liver disease and become a "cornerstone" treatment either on its own or in combination with Wegovy, Doustdar said in a statement on Thursday.
Under the deal, Novo would pay Akero shareholders $54 per share upfront in cash, which represents a premium of about 16.2% to Akero's last close of $46.49 on Wednesday.
The Danish drugmaker will also pay an additional $6 per share to Akero's shareholders if efruxifermin secures a full U.S. approval for the condition by June 30, 2031, the companies said.
Some Novo investors have recently told Reuters that they want to see the company invest heavily in research and development to build out its future drug pipeline and revive investor confidence with a growth story. Some have also said they would prefer the company diversify beyond weight loss and diabetes.
Doustdar has said the company will focus on developing the next generation of highly effective obesity and diabetes drugs that can also treat related cardiometabolic conditions such as MASH, rather than expand into other disease areas.
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