Novo Nordisk’s Major Acquisition: Akero Therapeutics Bought for Up to $5.2 Billion
Attractive Acquisition: Novo Nordisk’s Strategic Purchase of Akero Therapeutics
Danish Drug Giant’s First Major Move under New Leadership
In a significant move to bolster its position in the competitive pharmaceutical landscape, Novo Nordisk announced on Thursday its acquisition of Akero Therapeutics for a potential total of $5.2 billion. This strategic decision marks the first major acquisition by the company’s new CEO, Mike Doustdar, as he aims to stimulate growth and secure a competitive edge against U.S. rival Eli Lilly.
Expanding Pipeline with Promising Liver Disease Drug
The acquisition will allow Novo Nordisk to incorporate Akero’s experimental drug, efruxifermin, currently in late-stage trials for treating severe liver scarring or cirrhosis associated with metabolic dysfunction-associated steatohepatitis (MASH). With promising potential, efruxifermin could transform the treatment landscape for fatty liver disease, possibly becoming a “cornerstone” therapy either alone or in combination with Wegovy.
Financial Details and Market Reactions
Novo Nordisk has agreed to a $54 per share cash payment to Akero shareholders, reflecting a 16.2% premium over Akero’s recent closing price of $46.49. Additionally, a $6 per share contingency payment is tied to the full U.S. approval of efruxifermin by June 30, 2031. Following the announcement, Akero’s shares surged over 19% in premarket trading, whereas Novo’s shares listed in Denmark saw a slight decline of nearly 2%.
Investors’ Perspective: Focus on R&D and Diversification
Recent discussions with investors have highlighted a demand for increased investment in research and development, aiming to enrich Novo Nordisk’s drug pipeline. Investors express a desire for the company to move beyond its strength in weight loss and diabetes treatments to diversify into other therapeutic areas. However, Doustdar emphasizes the development of a new generation of highly effective obesity and diabetes drugs with additional potential to treat related cardiometabolic diseases, including MASH.
