Novo Nordisk to buy Akero for $4.7B
Novo Nordisk, the Danish pharma giant, just announced it's acquiring Akero Therapeutics for $4.7 billion in cash—a deal that could reach $5.2 billion if certain milestones are hit.
Akero shareholders get $54 per share now, plus an extra $6 per share if the FDA approves Akero's experimental drug efruxifermin (EFX) for a liver disease called MASH.
The deal is all about EFX
This move is all about EFX—a promising treatment for MASH—which helps Novo Nordisk beef up its lineup in metabolic and liver diseases.
The buyout price is generous too: a 19% premium over Akero's recent average and 42% higher than its pre-rumor price back in May.
Novo Nordisk's cash flow will take a hit
Novo Nordisk says its 2025 profits shouldn't take a hit, but free cash flow will drop by about $4 billion that year.
Looking ahead to 2026, expect higher R&D costs and slightly slower profit growth as they ramp up work on new treatments.
The deal still needs regulatory approval and will mostly be funded with debt.