Novo Nordisk Acquires Akero Therapeutics in $5.2B Deal, Intensifying Competition in MASH Treatment Market
Novo Nordisk has agreed to acquire Akero Therapeutics for up to $5.2 billion, marking a significant move in the rapidly evolving metabolic dysfunction-associated steatohepatitis (MASH) treatment landscape. The deal, which includes an upfront payment of $4.7 billion and potential additional payouts, underscores the growing importance of MASH therapies in the pharmaceutical industry.
Acquisition Details and Strategic Implications
Novo Nordisk will pay $54 per share in cash for Akero, representing a 19% premium over the biotech's 30-day average stock price. The agreement also includes a contingent value right of $6 per share, payable upon U.S. regulatory approval of Akero's lead drug candidate, efruxifermin (EFX), for the treatment of compensated cirrhosis due to MASH by June 30, 2031.
The acquisition aligns with Novo Nordisk's focus on metabolic disorders and expands its MASH portfolio. CEO Mike Doustdar emphasized that EFX "could become a cornerstone therapy, alone or together with Wegovy, to tackle one of the fastest-growing metabolic diseases of our time." Novo Nordisk's Wegovy recently gained FDA approval for MASH treatment, positioning the company as a major player in this therapeutic area.
Efruxifermin: A Promising MASH Treatment
Akero's efruxifermin, an FGF21 analog, has shown promising results in clinical trials. In Phase 2 testing, the highest dose of EFX was associated with an improvement in liver scarring without worsening of the condition in almost a third of patients who received it for 96 weeks. A Phase 3 trial completed enrollment in January and is expected to produce data next year.
The acquisition of Akero and its lead candidate EFX puts Novo Nordisk in direct competition with other pharmaceutical giants in the MASH space. Roche recently acquired 89bio for up to $3.5 billion, securing rights to pegozafermin, another FGF21 analog. Additionally, Madrigal Pharmaceuticals' Rezdiffra, the first specific drug approved for MASH, has shown strong sales since its U.S. launch in April, generating $350 million in the first half of this year.
Market Dynamics and Industry Trends
The recent surge in MASH-related acquisitions and drug developments highlights the growing recognition of MASH as a significant health concern. The condition, characterized by a buildup of fatty tissue in the liver, is linked to other metabolic disorders like diabetes and obesity.
Industry analysts view the MASH market as a potential blockbuster opportunity. BMO Capital Markets called Novo Nordisk's acquisition of Akero a "clean pipeline fit," noting the company's recent Wegovy approval and previous discontinuation of its own FGF21 program.
The deal comes at a time when Novo Nordisk is facing increased competition in the obesity treatment market from Eli Lilly's Zepbound and generic alternatives. The acquisition of Akero may help reassure investors and diversify Novo Nordisk's portfolio in the metabolic disease space.
References
- Novo Strikes up to $5.2B Deal for Akero in Red-Hot MASH Space
Novo will add Akero’s efruxifermin to its MASH portfolio, which includes Wegovy after the GLP-1 gained an FDA nod in the indication earlier this year.
- Novo joins MASH dealmaking surge with $4.7B Akero buyout
The deal is the third acquisition since May involving a drug that could reverse liver scarring in people with metabolic dysfunction-associated steatohepatitis.
- Novo inks Akero buyout worth up to $5.2B to bag late-phase MASH prospect
Novo Nordisk has struck a deal to buy Akero Therapeutics for up to $5.2 billion, teeing up a showdown with Roche and others in a blockbuster liver disease market.
Explore Further
What are the key differences in the clinical efficacy and safety data between Akero’s efruxifermin and Madrigal Pharmaceuticals’ Rezdiffra?
What is the projected market size for MASH therapies, and how does Novo Nordisk plan to position its portfolio within this space?
How might Novo Nordisk's acquisition of Akero Therapeutics impact its competition with Roche and Eli Lilly in the metabolic disease market?
What are the anticipated timelines for regulatory approval and commercialization of efruxifermin, and how critical are these milestones to the success of this acquisition?
What were the strategic considerations behind Novo Nordisk's decision to pursue Akero Therapeutics’ pipeline over other companies in the MASH treatment space?