Akero Therapeutics announced a public offering of over 5.3 million shares at $48 each, aiming for $350 million in proceeds.
Quiver AI Summary
Akero Therapeutics, Inc. has announced a public offering of 5,333,420 shares of common stock priced at $48.00 each, alongside pre-funded warrants for 1,958,247 shares at a price of $47.9999. The total expected gross proceeds from the offering are approximately $350 million, subject to standard closing conditions. The offering, managed by J.P. Morgan, Morgan Stanley, and Jefferies, is set to close around January 30, 2025. Akero aims to use the funds to advance its clinical programs, particularly its lead drug candidate, efruxifermin, which is in three Phase 3 studies for serious metabolic diseases. The shares are being offered under a previously filed shelf registration statement with the SEC.
Potential Positives
- Akero Therapeutics successfully priced an upsized public offering of 5,333,420 shares of common stock at $48.00 per share, indicating strong investor interest and confidence in the company.
- The offering is expected to generate approximately $350.0 million in gross proceeds, providing substantial funding for continued development of its clinical programs and potential expansion of its operations.
- Akero has established a robust clinical pipeline, with its lead candidate efruxifermin (EFX) currently being evaluated in three ongoing Phase 3 clinical studies, demonstrating the company's commitment to addressing significant unmet medical needs in metabolic diseases.
- The company has retained reputable underwriters for the offering, including J.P. Morgan and Morgan Stanley, which may enhance credibility and visibility in the market.
Potential Negatives
- The announcement of an upsized underwritten public offering may indicate that Akero is facing financial challenges or requires additional capital, potentially raising concerns among investors about the company's financial stability.
- The fact that the offering is both substantial and intended to raise around $350 million without disclosed specific uses for the capital could lead to investor skepticism regarding the company's future plans and priorities.
- The inclusion of forward-looking statements suggests a reliance on uncertain market conditions and presents risks that could lead to volatility in stock performance if the offering does not meet expectations.
FAQ
What is Akero Therapeutics' recent public offering?
Akero Therapeutics announced an upsized underwritten public offering of 5,333,420 shares of common stock priced at $48.00 each.
What are the proceeds from Akero's offering?
The gross proceeds from the offering are expected to be approximately $350 million, before deductions.
When is the expected closing date for the offering?
The offering is expected to close on or about January 30, 2025, pending customary closing conditions.
Who are the underwriters for this public offering?
J.P. Morgan, Morgan Stanley, and Jefferies are acting as joint book-running managers for the offering.
What is Akero's focus in drug development?
Akero Therapeutics develops treatments for serious metabolic diseases with high unmet medical need, including MASH and MASLD.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$AKRO Insider Trading Activity
$AKRO insiders have traded $AKRO stock on the open market 52 times in the past 6 months. Of those trades, 0 have been purchases and 52 have been sales.
Here’s a breakdown of recent trading of $AKRO stock by insiders over the last 6 months:
- ANDREW CHENG (President and CEO) has made 0 purchases and 9 sales selling 234,593 shares for an estimated $7,405,956.
- JONATHAN YOUNG (Chief Operating Officer) has made 0 purchases and 13 sales selling 133,787 shares for an estimated $4,050,022.
- CATRIONA YALE (Chief Development Officer) has made 0 purchases and 18 sales selling 101,436 shares for an estimated $3,055,108.
- WILLIAM RICHARD WHITE (Chief Financial Officer) has made 0 purchases and 6 sales selling 101,790 shares for an estimated $2,760,714.
- TIMOTHY ROLPH (Chief Scientific Officer) has made 0 purchases and 4 sales selling 9,155 shares for an estimated $281,165.
- PATRICK LAMY (Senior VP, Commercial Strategy) has made 0 purchases and 2 sales selling 1,925 shares for an estimated $57,610.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$AKRO Hedge Fund Activity
We have seen 78 institutional investors add shares of $AKRO stock to their portfolio, and 70 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- WELLINGTON MANAGEMENT GROUP LLP added 2,782,029 shares (+54.4%) to their portfolio in Q3 2024, for an estimated $79,816,412
- POINT72 ASSET MANAGEMENT, L.P. added 1,303,323 shares (+inf%) to their portfolio in Q3 2024, for an estimated $37,392,336
- BRAIDWELL LP removed 1,084,400 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $31,111,436
- DEEP TRACK CAPITAL, LP added 689,784 shares (+inf%) to their portfolio in Q3 2024, for an estimated $19,789,902
- YIHENG CAPITAL MANAGEMENT, L.P. removed 675,410 shares (-47.1%) from their portfolio in Q3 2024, for an estimated $19,377,512
- SG AMERICAS SECURITIES, LLC added 583,486 shares (+4022.1%) to their portfolio in Q4 2024, for an estimated $16,232,580
- MORGAN STANLEY removed 498,458 shares (-52.7%) from their portfolio in Q3 2024, for an estimated $14,300,760
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
SOUTH SAN FRANCISCO, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Akero Therapeutics, Inc. (Nasdaq: AKRO), a clinical-stage company developing transformational treatments for patients with serious metabolic disease marked by high unmet medical need, announced today the pricing of an upsized underwritten public offering of 5,333,420 shares of its common stock at a public offering price of $48.00 per share and, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase 1,958,247 shares of common stock at a public offering price of $47.9999 per pre-funded warrant, which represents the per share public offering price for the common stock less the $0.0001 per share exercise price for each pre-funded warrant. All of the shares and pre-funded warrants in the offering are being offered by Akero. In addition, Akero has granted the underwriters a 30-day option to purchase up to an additional 1,093,750 shares of its common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be approximately $350.0 million, excluding any exercise of the underwriters’ option to purchase additional shares and excluding the exercise of any pre-funded warrants. The offering is expected to close on or about January 30, 2025, subject to the satisfaction of customary closing conditions.
J.P. Morgan, Morgan Stanley, and Jefferies are acting as joint book-running managers for the offering. UBS Investment Bank is acting as co-manager for the offering.
The securities are being offered by Akero pursuant to an automatically effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC on January 27, 2025. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and may be obtained, when available, from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at [email protected]; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2 nd Floor, New York, NY 10014, or by email at [email protected]; or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at [email protected]; or by accessing the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Akero Therapeutics
Akero Therapeutics is a clinical-stage company developing transformational treatments for patients with serious metabolic diseases marked by high unmet medical need, including metabolic dysfunction-associated steatohepatitis (MASH). Akero’s lead product candidate, efruxifermin (EFX), is currently being evaluated in three ongoing Phase 3 clinical studies: SYNCHRONY Histology in patients with pre-cirrhotic MASH (F2-F3 fibrosis), SYNCHRONY Outcomes in patients with compensated cirrhosis due to MASH, and SYNCHRONY Real-World in patients with MASH or MASLD (Metabolic Dysfunction Associated Steatotic Liver Disease). The Phase 3 SYNCHRONY program builds on the results of two Phase 2b clinical trials, the HARMONY study in patients with pre-cirrhotic MASH and the SYMMETRY study in patients with compensated cirrhosis due to MASH.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the closing of Akero’s anticipated public offering. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, uncertainties related to market conditions and statements regarding the timing, size and expected gross proceeds of the offering, the satisfaction of customary closing conditions related to the offering and sale of securities, and Akero’s ability to complete the offering. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Akero’s most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC, as well as discussions of potential risks, uncertainties, and other important factors in Akero’s other filings with the SEC, including those contained or incorporated by reference in the preliminary prospectus supplement and accompanying prospectus related to the offering to be filed with the SEC. Any forward-looking statements contained in this press release represent Akero’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Akero explicitly disclaims any obligation to update any forward-looking statements, except as required by law.
Investor Contact:
Christina Tartaglia
Precision AQ
212.362.1200
[email protected]
Media Contact:
Peg Rusconi
Deerfield Group
617.910.6217
[email protected]