Akero Therapeutics Inc (NASDAQ: AKRO) says its candidate treatment for a serious liver disease demonstrated exceptional safety and efficacy in a Phase 2b study.
A 50-milligram dose of efruxifermin resulted in the reversal of cirrhosis in 39% of the patients while none of them experienced any further worsening of MASH, as per the company’s press release.
In the placebo group, similar results were observed in 15% of the patients only – a statistically significant difference that helped Akero stock more than double on Monday.
Efruxifermin data sends Akero stock up a 110%
Akero Therapeutics is rallying hard this morning also because the mid-stage trial also confirmed that efruxifermin is well-tolerated in liver patients.
No deaths were reported in the study group while one of those on placebo died due to pneumonia.
More importantly, the serious adverse events were not found related to efruxifermin either, according to the biotechnology company based out of San Francisco, CA.
Commenting on Akero’s update this morning, Leerink Partners analyst Thomas Smith said the Phase 2b results were particularly significant as investors had expected a 15% reversal in cirrhosis only.
Akero stock does not currently pay a dividend, though.
AKRO is the first to show reversal of cirrhosis
Investors are cheering efruxifermin’s mid-stage data today also because there’s only one other treatment for MASH that’s currently on the shelves – Rezdiffra by Madrigal Pharma.
And that too is for patients with moderate level of scarring on the liver or “fibrosis” only.
“Akero is the first to show reversal of cirrhosis, a goal that has evaded the field until now. P3 is derisked,” analysts at Evercore ISI told clients in a research note on Monday.
AKRO’s Phase 2b data is significant for patients with compensated cirrhosis due to MASH as they are often at the risk of health complications and even life-threatening outcomes.
Following this morning’s surge, Akero Therapeutics stock has returned to the price at which it traded in June of 2023.
Akero has funds to operate through 2027
Evercore ISI analysts are convinced Akero Therapeutics Inc will secure accelerated approval for efruxifermin after the “transformational” mid-stage data it reported on Monday.
The biotech firm ended its latest reported quarter with $787 million in cash, cash equivalents, and short-term marketable securities.
AKRO’s management expects those funds to prove sufficient for the “Phase 3 SYNCHRONY Histology and Real-World studies” and to execute its operating plan into the second half of 2027.
Wall Street currently has a consensus “buy” rating on Akero stock. The highest price target is set at $65 that indicates potential for another 20% upside from current levels.
Today’s encouraging update is even making some speculate that Akero Therapeutics might be a buyout target in 2025.
The post Why did Akero (AKRO) stock soar 110% on Monday? appeared first on Invezz