Shares in Akero Therapeutics (AKRO) raced 19% higher today after it was bought by pharmaceutical giant Novo Nordisk (NVO) for up to $5.2 billion.
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Novo Nordisk, whose stock fell 1.4%, said it 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.
Unmet Needs
The transaction has been unanimously approved by Akero’s Board of Directors and is expected to close around the turn of the year.
The deal gives Novo the opportunity to better target patients with “serious metabolic diseases marked by a high unmet medical need.”
That’s because Akero is working on an experimental liver disease drug called efruxifermin to tackle fibrosis and cirrhosis. The drug is being studied in patients with severe scarring or cirrhosis due to a type of fatty liver disease known as metabolic dysfunction-associated steatohepatitis (MASH).
Novo believes that will pair well with its expertise in diabetes and obesity.
The Danish drugmaker said it will also pay an additional $6 per share upon full U.S. approval of efruxifermin for treatment of compensated cirrhosis due to MASH by June 30, 2031.
“MASH destroys lives silently. Efruxifermin has the potential to change that by reversing liver damage,” said Mike Doustdar, President and CEO of Novo Nordisk. “If approved, we believe it could become a cornerstone therapy, alone or together with Wegovy, to tackle one of the fastest-growing metabolic diseases of our time.”
Novo Struggles
Wegovy is Novo’s blockbuster obesity drug, which is facing intense competition from rivals such as Eli Lilly (LLY) and its Mounjaro and Zepbound treatments.
Doustdar, who took the reins in July, wants to rein in costs after Novo’s rapid expansion during the height of the weight-loss trend. Last month he said that the company plans to trim about 9,000 jobs worldwide, or 11% of its global workforce, as part of an effort to save 8 billion Danish kroner ($1.25 billion) annually by 2026.
Sales in the U.S. have also been hit by compounding pharmacies making copycat versions of Wegovy, which regulators allowed due to shortages. In July, investors cut about $70 billion off Novo’s market value after the company issued a profit warning.
As a result, as can be seen above, the share price has suffered so far in 2025. By focusing on niche deals like AKRO the hope is that brighter days are ahead.
Is NVO a Good Stock to Buy Now?
On TipRanks, NVO has a Moderate Buy consensus based on 5 Buy, 2 Hold and 1 Sell ratings. Its highest price target is $70. NVO stock’s consensus price target is $59.53, implying a 0.13% downside.
