Promising Phase 2b Results for Akero Therapeutics’ Efruxifermin Highlight Potential for FDA Approval Despite Key Risk Score Challenges

Analyst David Lebowitz of Citi maintained a Buy rating on Akero Therapeutics (AKRO – Research Report), with a price target of $80.00.

David Lebowitz’s rating is based on the promising results from Akero Therapeutics’ Phase 2b SYMMETRY trial for their drug efruxifermin (EFX) in patients with F4 cirrhosis. The trial demonstrated significant improvements in fibrosis with notable placebo-adjusted responder rates in both the 28mg and 50mg dose groups. Additionally, the trial highlighted a substantial reduction in liver stiffness, particularly in the 50mg group, which outperformed a competitor’s drug in similar trials.
Despite these positive indicators, the trial did not show improvements in two key risk scores predictive of mortality in severe liver disease, underscoring the necessity for long-term outcomes data. Nevertheless, consistent responses across various patient subgroups and dose-dependent improvements in the ELF score suggest potential for future success. Akero’s ongoing SYNCHRONY OUTCOMES trial, which has gained increased interest, is expected to provide further insights that could support FDA approval, contributing to the Buy rating.

In another report released on May 9, Morgan Stanley also maintained a Buy rating on the stock with a $90.00 price target.

Based on the recent corporate insider activity of 116 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AKRO in relation to earlier this year.