- Akero Therapeutics Inc AKRO announced a $25 million equity investment by Pfizer Inc PFE at $9.90 per share.
- The company also announced a term loan facility providing Akero with access to up to $100 million from Hercules Capital Inc HTGC, of which $10 million will be drawn at transaction close.
- Together with existing cash, proceeds will support Akero's development of efruxifermin, including two ongoing Phase 2b trials in nonalcoholic steatohepatitis (NASH), manufacture of a drug product-device combination for Phase 3 trials, and initiation of a Phase 3 trial program.
- If the term loan is fully drawn, proceeds from these two transactions and budget optimization efforts are expected to fund Akero's current operating plan until Q3 of 2024.
- Following the transaction, Pfizer will own approximately 6.7% of Akero's outstanding common stock.
- For the term loan, Akero may draw an additional $35 million in two separate tranches upon achievement of near-term clinical and financial milestones.
- An additional $45 million may be drawn in a third tranche, subject to the approval of Hercules Capital.
- Price Action: AKRO shares are up 10.59% at $9.40 during the premarket session on the last check Thursday.
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