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Novo Nordisk (NYSE:NVO) announced Thursday it has entered into a definitive agreement to acquire Akero Therapeutics (NASDAQ:AKRO), a clinical-stage company focused on treatments for metabolic diseases. The transaction, valued at up to $5.2 billion, is designed to expand Novo Nordisk’s portfolio for metabolic dysfunction-associated steatohepatitis (MASH), according to a press release statement and SEC filing.
Under the terms of the agreement, Novo Nordisk will acquire all outstanding shares of Akero Therapeutics for $54 per share in cash, totaling approximately $4.7 billion at closing. Akero shareholders will also receive a contingent value right (CVR) of $6 per share, or $0.5 billion in total, payable upon U.S. regulatory approval of Akero’s lead drug candidate, efruxifermin (EFX), for the treatment of compensated cirrhosis due to MASH.
Efruxifermin is currently in phase 3 development for the treatment of patients with moderate to advanced liver fibrosis (stages F2-F3) and patients with cirrhosis (F4) resulting from MASH. In phase 2 trials, EFX demonstrated significant improvements in liver fibrosis and reversal of compensated cirrhosis, with a 49% reduction in fibrosis for F2-F3 patients and 29% in F4 patients, compared to 19% and 11% for placebo, respectively. This development aligns with Novo Nordisk’s strong financial performance, as evidenced by its impressive revenue growth of 12% over the last twelve months and healthy gross profit margin of 83%.
The acquisition has been unanimously approved by Akero’s board of directors. The transaction is expected to close around the end of the year, subject to regulatory approvals and customary closing conditions. Novo Nordisk stated the deal will be mainly debt financed.
Novo Nordisk reported that the acquisition is not expected to affect its previously communicated operating profit outlook for 2025, but anticipates a negative impact on its free cash flow outlook for 2025 by approximately $4 billion. For 2026, the company expects increased research and development costs, with an estimated negative impact on full-year operating profit growth of around 3 percentage points, depending on the timing of closing.
This information is based on a press release statement included in a recent SEC filing.
In other recent news, Goldman Sachs has been in the spotlight with several notable developments. BMO Capital has initiated coverage on Goldman Sachs with a Market Perform rating, setting a price target of $785. This comes as the bank’s shares are trading near all-time highs, with BMO Capital highlighting Goldman Sachs as a strong franchise poised to benefit from a capital markets recovery. Additionally, Goldman Sachs is leading a group of banks in launching a $5.5 billion leveraged loan to finance Thoma Bravo’s acquisition of Dayforce Inc., which values the company at $12.4 billion, including debt. In another development, Goldman Sachs is collaborating with Bank of America and JPMorgan Chase on the potential IPO of Caliber Holdings Inc., an auto repair firm backed by Hellman & Friedman, which could occur as early as next year. Furthermore, Goldman Sachs announced the retirement of its chief US equity strategist, David Kostin, at the end of the year, after more than three decades at the firm. Kostin will be succeeded by Ben Snider, marking a significant leadership change in the bank’s equity strategy team. These updates reflect Goldman Sachs’ active involvement in major financial transactions and strategic personnel changes.
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