Akero Therapeutics Shares Surge After Equity Investment From This Famed Large Cap Biopharma

  • 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.

Posted In: Briefswhy it's movingBiotechLarge CapNewsHealth CareFinancingSmall CapMoversTrading IdeasGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.