Buy Rating Affirmed for Akero Therapeutics Amid Promising Phase 3 Drug Trial for MASH Treatment

Ed Arce, an analyst from H.C. Wainwright, maintained the Buy rating on Akero Therapeutics (AKRO – Research Report). The associated price target remains the same with $50.00.

Ed Arce has given his Buy rating due to a combination of factors surrounding Akero Therapeutics’s promising drug candidate, efruxifermin (EFX), for the treatment of MASH (metabolic-associated steatohepatitis) in patients with advanced fibrosis. The initiation and progress of the SYNCHRONY Outcomes trial, a pivotal Phase 3 study, plays a significant role in this positive outlook. This trial is set to provide crucial data on the drug’s long-term efficacy and safety, specifically looking at fibrosis regression without worsening MASH after 96 weeks of treatment, and further evaluating the impact on overall mortality and liver-related clinical outcomes. Arce perceives the upcoming Week 96 data from the Phase 2b SYMMETRY study as a key milestone that could potentially support the long-term effects of EFX in treating F4 MASH patients.

Furthermore, the comprehensive nature of Akero’s SYNCHRONY program, which addresses the entire spectrum of MASH, contributes to the optimistic stance. The program includes additional studies aimed at pre-cirrhotic patients and real-world safety evaluations, with endpoints that support accelerated approval and monitor long-term clinical outcomes. Arce’s valuation includes a risk-adjusted per-share value estimation of EFX, taking into account its market potential and projected global peak revenues. The Buy rating also factors in the potential for commercialization with the LyoJect 3S syringe, designed for patient self-administration. Despite the positive rating, acknowledged risks such as trial failures, safety concerns, delays, or funding issues could impact the stock’s performance and are considered in the overall analysis.

In another report released on September 9, Morgan Stanley also maintained a Buy rating on the stock with a $46.00 price target.

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Akero Therapeutics (AKRO) Company Description:

Akero Therapeutics, Inc. operates as a biotechnology company. The firm specializes in transformational treatments for non-alcoholic steatohepatitis (NASH) and other serious metabolic diseases. The company was founded by Jonathan Young and Timothy Rolph on January 24, 2017 and is headquartered in South San Francisco, CA.