Akero upside capped on bone mineral density questions, says Cantor

Cantor Fitzgerald Akero Therapeutics’ efruxifermin showed “outstanding efficacy” on fibrosis at 96-week biopsy in fibrosis stage 2 or 3. However, questions on bone mineral density reduction seen in the trial raised some safety questions that have put a cap on the stock upside today, the analyst tells investors in a research note. Importantly, there were no fractures, which gives Cantor comfort around efruxifermin’s safety profile. However, this needs to be better managed in the Phase 3 study, the firm adds. The analyst has an Overweight rating on Akero with no price target.