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By Maggie Fick and Mariam Sunny
(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 progress.
Mike Doustdar, who took the helm on the Wegovy maker in July, has signaled a deal with new, extremely efficient weight problems and diabetes medicine that may additionally deal with associated cardiometabolic circumstances equivalent to MASH, moderately 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 current inner restructuring at Novo, positively as Doustdar works to carry the ship again on track,” 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 lower 9,000 jobs.
HIGH GROWTH POTENTIAL
Efruxifermin has proven potential in reversing liver scarring in MASH sufferers in earlier research.
Doustdar known as it “an necessary constructing block” for future progress, 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 broaden in a high-growth space, the place rivals equivalent to Roche and GSK have additionally made current 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 remedies as efruxifermin.
DEALS GETTING BIGGER
Akero marks a big enhance in deal dimension for Novo, as its current biotech acquisitions in metabolic ailments sometimes 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 contains an upfront money cost of $54 per share held, totaling about $4.7 billion, a 16.2% premium over Akero’s final closing value.
A further $6 per share will probably be paid if efruxifermin secures full U.S. approval by June 2031.
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