Shares of Akero Therapeutics (AKRO) skyrocketed on Monday following game-changing results from its lead drug, efruxifermin, in treating metabolic dysfunction-associated steatohepatitis (MASH). The announcement led to a 97.5% surge in Akero’s shares, closing at $51.71. Meanwhile, 89bio (ETNB), which is also testing a similar drug, saw a 26.2% increase.
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What is the MASH Study and Why Does it Matter?
A MASH study is a research study focused on metabolic dysfunction-associated steatohepatitis, a type of liver disease that leads to the buildup of scar tissue on the liver, eventually progressing to cirrhosis. Cirrhosis impairs the liver’s ability to function properly. Typically, a liver transplant is the only available treatment option for advanced cirrhosis.
The study becomes highly relevant as it addresses a critical unmet medical need for patients with severe liver damage. As a result, industry experts foresee Akero’s drug as a potential multibillion-dollar opportunity.
Akero Unveils Early Data from Latest Trial
In a detailed 96-week Phase 2b clinical trial, 39% of patients who received a 50 mg dose of efruxifermin showed improvements in liver cirrhosis without worsening MASH, compared to just 15% in the placebo group. This significant result marks a major advancement in treating liver cirrhosis associated with MASH.
Analysts Back Akero’s Potential After Positive Data
Following the release of results, several analysts have recently shared their opinions on AKRO shares and evaluated their ratings. Overall, analysts believe efruxifermin could become a market leader, offering significant financial gains for investors if it receives regulatory approval.
Analyst Thomas Smith from Leerink Partners describes the results as significantly surpassing investor expectations. Meanwhile, Morgan Stanley analyst Michael Ulz increased his price target on AKRO stock to $96, predicting a solid upside of 85.65%. Ulz is bullish on the strong results and has increased the likelihood of success in F4 (biopsy-confirmed compensated cirrhosis) MASH patients to 80%, up from the previous estimate of 55%.
Additionally, these results indicate that efruxifermin could pose a competitive challenge to the dominance of GLP-1 medications like Eli Lilly’s (LLY) tirzepatide in the MASH treatment market, emphasizing its significant market potential.
What is the Stock Price Prediction for Akero?
According to the consensus rating on TipRanks, AKRO stock has received a Strong Buy rating, based on eight Buy and one Hold recommendations. The Akero share price forecast is $61.89, which is 20% above the current trading level.
Year-to-date, AKRO stock has increased by 85%.
