A view of the brand of Novo Nordisk on the firm’s workplace in Bagsvaerd, on the outskirts of Copenhagen, Denmark, March 8, 2024.
Tom Little | Reuters
Novo Nordisk stated on Thursday it will purchase U.S.-based Akero Therapeutics for as much as $5.2 billion to realize entry to a promising liver illness drug candidate, within the first main deal by the Danish drugmaker’s new CEO to spur development.
Mike Doustdar, who took the helm on the Wegovy maker in July, has signaled a deal with new, extremely efficient weight problems and diabetes medication that may additionally deal with associated cardiometabolic circumstances comparable to MASH, fairly than increasing into different areas.
Akero’s drug candidate, efruxifermin, is at present in late-stage trials for treating metabolic dysfunction-associated steatohepatitis (MASH).
“We view this deal, coupled with latest inside restructuring at Novo, positively as Doustdar works to deliver the ship again heading in the right direction,” stated BMO Capital analyst Evan Seigerman.
Underneath Doustdar, tasked with stemming market share losses to U.S. rival Eli Lilly, the corporate final month stated it will reduce 9,000 jobs.
Excessive development potential
Efruxifermin has proven potential in reversing liver scarring in MASH sufferers in earlier research.
Doustdar referred to as it “an vital constructing block” for future development, particularly as Novo prepares for the lack of exclusivity on semaglutide, the energetic ingredient in blockbuster drug Wegovy, beginning subsequent yr in areas like India and China.
Lukas Leu, a portfolio supervisor at Novo Nordisk shareholder ATG Healthcare, stated it was encouraging to see Novo seal a significant deal and develop in a high-growth space, the place rivals comparable to Roche and GSK have additionally made latest strikes.
In August, Wegovy turned the primary GLP-1 drug to obtain accelerated approval for MASH within the U.S., the place the illness impacts round 5% of adults.
Novo has discontinued its MASH candidate, zalfermin, which belonged to the identical class of therapies as efruxifermin.
Offers getting greater
Akero marks a major improve in deal dimension for Novo, as its latest biotech acquisitions in metabolic illnesses usually ranged between $1 billion and $2 billion.
“They should begin buying belongings and increasing their pipeline,” Leu stated, including that he stays cautious given the inventory is “nonetheless within the doghouse”.
Novo shares have risen 11% since Doustdar’s appointment, however stay down almost 40% for the yr, reflecting investor considerations over Wegovy’s U.S. prescription tendencies.
The Akero deal consists of an upfront money cost of $54 per share held, totaling about $4.7 billion, a 16.2% premium over Akero’s final closing worth.
An extra $6 per share will likely be paid if efruxifermin secures full U.S. approval by June 2031.
Akero’s shares rose over 16% in afternoon buying and selling, whereas Novo shares slipped 1%.
Novo plans to finance the acquisition by debt and expects to shut the deal by the tip of the yr.
