Akero Therapeutics Inc. (NASDAQ: AKRO), says that its treatment candidate for a severe liver disease showed exceptional efficacy and safety in a phase 2b trial.
According to the press release of the company, a 50-milligram dosage of efruxifermin reversed cirrhosis for 39% of patients. None of these patients experienced a worsening in MASH.
The placebo group only had 15% patients with similar results. This statistically significant difference helped Akero’s stock to more than double in value on Monday.
Akero shares rise 110% on Efruxifermin stock data
Akero Therapeutics has been a strong performer this morning, also due to the fact that the mid-stage study confirmed that efruxifermin was well tolerated in liver patients.
One person on the placebo group died from pneumonia, while no deaths occurred in the control group.
The biotechnology firm based in San Francisco, CA, says that the company has also found no serious adverse reactions related to efruxifermin.
Thomas Smith, an analyst at Leerink Partners who commented on Akero’s morning update, said that the Phase 2b Results were especially significant because investors expected only a 15% reduction in cirrhosis.
Akero does not pay dividends at the moment.
AKRO was the first one to reverse cirrhosis
Investors cheered efruxifermin’s mid-stage results today, also because only one treatment is currently available for MASH – Rezdiffra from Madrigal Pharma.
This is only for those with a moderate amount of liver “fibrosis”, or scarring.
Akero has shown the first reversal in cirrhosis. This goal had eluded researchers until now. Evercore ISI analysts told their clients on Monday that P3 was derisked.
AKRO’s Phase 2b results are important for patients who have compensated cirrhosis as a result of MASH, since they often face health complications or even death.
Akero Therapeutics’ stock price has dropped to its June 2023 trading level following the morning surge.
Akero will continue to be funded through 2027
Evercore ISI analyst believes Akero Therapeutics Inc. will receive accelerated approval of efruxifermin following the “transformational mid-stage” data that it announced on Monday.
Biotech company ended latest quarter reported with cash, short-term marketable assets, and cash equivalents of $787 Million.
AKRO expects that these funds will be sufficient to complete the Phase 3 SYNCHRONY Studies in Histology, and Real World as well as to implement its operational plan until the second half 2027.
Akero’s stock is currently rated “buy” by Wall Street. Price target of $65 indicates a potential 20% increase from current levels.
Some speculate, based on today’s positive update, that Akero Therapeutics could be the target of a takeover bid in 2025.
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