Akero (AKRO) Stock Surges on Promising Drug Results

By Patricia Miller

Jan 28, 2025

2 min read

Akero Therapeutics' efruxifermin shows promising results in treating liver cirrhosis, driving stock surges and revealing new investment prospects in biotech.

3d illustration of Abstract medical background with Diseased liver

What You Need To Know

Akero Therapeutics (NASDAQ: AKRO) experienced a significant increase in its stock price, more than doubling after its lead drug, efruxifermin, showed promising results in treating metabolic dysfunction-associated steatohepatitis, also known as MASH. In a comprehensive 96-week Phase 2b clinical trial, 39% of patients taking a 50mg dose of efruxifermin saw improvements in liver cirrhosis without exacerbating MASH, in contrast to 15% in the placebo group. This breakthrough represents a notable development in addressing liver cirrhosis linked to MASH.

Additionally, the positive results had a ripple effect on shares of competitor 89bio (NASDAQ: ETNB), which saw a stock increase exceeding 60%. Industry analysts predict that Akero's drug could be a multibillion-dollar opportunity, targeting a significant unmet health issue for patients with severe liver damage. Furthermore, these findings suggest that efruxifermin may challenge the dominance of GLP-1 medications, such as Eli Lilly's tirzepatide, in the MASH treatment landscape, highlighting its potential market significance.

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Why This Is Important for Retail Investors

  1. Stock Surge: The impressive increase in Akero's stock price indicates strong market confidence, presenting potential investment opportunities for retail investors.

  2. Breakthrough Treatment Potential: Efruxifermin’s success in reversing liver cirrhosis signals a major advancement in medical treatments, likely increasing demand and market value.

  3. Competition in Biotech: The positive results not only benefit Akero but also influence adjacent companies like 89bio, creating a dynamic sector for investors to monitor.

  4. Multibillion-Dollar Market Opportunity: Analysts view efruxifermin as a potential market leader, which could lead to substantial financial returns for investors if the drug gains regulatory approval.

  5. Evolving Treatment Landscape: The challenge to existing therapies like GLP-1 drugs could shift market dynamics, providing retail investors with insights into emerging trends and investment strategies.

Read What Others Are Saying

Reuters: Akero soars as drug shows it reverses scarring in liver disease patients

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.