Novo Nordisk announced plans to acquire Akero Therapeutics and its phase 3 FGF21 analog efruxifermin for $4.7 billion upfront and up to $500 million contingent value right. The deal aligns with Novo’s focus on cardiometabolic disease under new CEO Mike Doustdar. Efruxifermin is in phase 3 development for treating metabolic dysfunction-associated steatohepatitis.

The acquisition of Akero Therapeutics by Novo Nordisk is significant, as it expands Novo’s pipeline in the metabolic disease space. Efruxifermin, when combined with GLP-1 therapy Wegovy, has potential to improve efficacy for patients with moderate to advanced liver scarring. Novo’s strategic move follows recent acquisitions in the FGF21 analog space by other pharmaceutical firms.

Maintaining a fair value estimate of DKK 458/$71 for Novo Nordisk, incorporating the Akero acquisition into the model. Efruxifermin is expected to have a leading position in the MASH pipeline and could provide a first-to-market treatment for advanced liver disease. Anticipating phase 3 data in 2027 and potential approval by 2028, with projected combined MASH sales exceeding $2 billion by 2034.

Read more at Morningstar: New CEO Executing on Focused Strategy With Akero Acquisition