Liver drugmaker Akero to be acquired by Novo Nordisk; shares soar 17%

Danish pharmaceutical company Novo Nordisk, the maker of Ozempic and Wegovy, has announced the acquisition of U.S.-based Akero Therapeutics, a developer of a promising treatment for fatty liver disease. This is Novo Nordisk’s first major deal under its new CEO. The total value of the transaction could reach up to $5.2 billion – significantly more than the Danish company has spent on any previous acquisition. Following the announcement, JPMorgan reiterated its “buy” rating on Novo Nordisk shares, citing upside of about 30%.

Novo Nordisk announced today, October 9, that it will acquire Akero Therapeutics, a clinical-stage biotechnology company developing efruxifermin, a potential treatment for metabolic dysfunction-associated steatohepatitis (MASH), a severe form of fatty liver disease.

The deal values Akero at up to $5.2 billion. Novo Nordisk will pay $54 per share in cash – a 16% premium to Akero’s last closing price – for an upfront payment of about $4.7 billion. An additional $6 per share will be paid if efruxifermin wins full U.S. approval for treating the disease by June 30, 2031. Akero is currently conducting late-stage clinical trials of the drug in patients with advanced fibrosis or cirrhosis caused by MASH.

The acquisition marks the first major deal under Novo Nordisk CEO Mike Doustdar, who took the helm in July and has pledged to accelerate growth, 

Reuters writes. Shares of Novo Nordisk, which have lost more than a third of their value since the start of the year, slipped 1.4% on the news. Akero shares surged 16.5% and are up 95% year to date.

Efruxifermin could become a breakthrough treatment for fatty liver disease and an important addition to Novo Nordisk’s cardiometabolic portfolio. Doustdar said the therapy could be used as a standalone drug or in combination with Wegovy.

Under Doustdar, the company has shifted focus toward developing next-generation obesity and diabetes drugs that also target cardiometabolic complications such as MASH. The strategy comes as Novo Nordisk faces intensifying competition from U.S.-based Eli Lilly and prepares for the loss of exclusivity on semaglutide, the active ingredient in Wegovy, in markets such as India and China.

Akero marks a significant increase in deal size for Novo Nordisk, as its recent biotech acquisitions in metabolic diseases typically ranged between $1 billion and $2 billion, notes Reuters.

Nordnet analyst Per Hansen called the acquisition “costly” but said it underscores Novo Nordisk’s determination to broaden its portfolio. Some shareholders told Reuters that the company should boost investment in R&D to restore investor confidence, while others said it needs to diversify beyond obesity and diabetes.

Analysts broadly welcomed the acquisition. Bloomberg Intelligence said the deal will enhance Novo Nordisk’s focus on cardiometabolic diseases and complement its existing portfolio, as reported by MarketScreener.

Following the announcement, JPMorgan reiterated its “buy” rating on Novo Nordisk with a target price of DKK500 per share, implying about 30% upside.

According to MarketScreener data, the consensus on Novo Nordisk remains positive: of the 20 analysts covering the stock, 12 recommend “buy” (including “outperform”), six rate it “hold,” and two advise “sell.”

The AI translation of this story was reviewed by a human editor.