Novo Nordisk's New CEO Makes $5.2B Bet on Liver Disease Treatment Through Akero Acquisition

TradingKey - Danish pharmaceutical giant Novo Nordisk announced on Thursday that it will acquire U.S. biotechnology company Akero Therapeutics for a total consideration of up to $5.2 billion. This transaction represents the first major growth initiative by new CEO Mike Doustdar, targeting Akero's highly promising liver disease candidate drug efruxifermin (EFX) to strengthen its leading portfolio in metabolic diseases. Following the news, Akero's stock price rose over 16% in Thursday's trading.

(Source: TradingKey)

Under the terms of the agreement, Novo Nordisk will acquire Akero for $54 per share in cash, representing an upfront payment of approximately $4.7 billion. The remaining amount (approximately $500 million) will be paid as contingent value rights (CVRs) upon FDA approval of Akero's lead candidate efruxifermin.

Efruxifermin is a fibroblast growth factor 21 (FGF21) analog currently in late-stage clinical trials for MASH-related liver fibrosis and cirrhosis. The drug has demonstrated significant efficacy in early studies: when treating pre-cirrhotic MASH patients, efruxifermin achieved a 49% improvement rate, and a 29% improvement rate in patients with compensated cirrhosis—far exceeding the 19% and 11% improvement rates seen in placebo groups, respectively.

Since taking the helm in July, CEO Mike Doustdar has clearly signaled his focus on developing novel, effective obesity and diabetes medications while expanding the company's capabilities in treating related cardiometabolic diseases such as MASH.

In a statement, Doustdar emphasized that efruxifermin could potentially be used "either alone or in combination with Wegovy" to more effectively treat liver damage, calling the acquisition a reflection of the company's "move faster, go further, and ultimately deliver on our commitment to pursue leadership in diabetes, obesity and their associated comorbidities."

The size of this acquisition ($5.2 billion) significantly exceeds Novo Nordisk's typical biotech acquisitions in the metabolic disease space, which usually range from $1 billion to $2 billion, reflecting the company's high regard for this asset and its market potential. Doustdar referred to efruxifermin as an "important cornerstone" for future growth, especially as Novo Nordisk prepares to lose exclusivity for semaglutide (the active ingredient in Wegovy) in regions such as India and China starting next year.

“We are excited to enter into this transaction with Novo Nordisk, which follows a comprehensive review undertaken by our Board of Directors, delivers meaningful value to Akero shareholders, and positions us to expand treatment options for people around the globe through Novo Nordisk’s industry-leading development capabilities and commercial infrastructure,” said Andrew Cheng, M.D., Ph.D, President and CEO of Akero Therapeutics.