Jefferies sees Akero, Scholar Rock as ‘promising’ takeover targets

Jefferies thinks big pharma companies are “still on the hunt” for deals as Pfizer (PFE), Biogen (BIIB), Merck (MRK), Eli Lilly (LLY), Gilead (GILD) and others have publicly discussed active business development to “fill voids.” Jefferies highlights “multiple de-risked or commercial-stage names” that it thinks have “promising” takeover potential, including Akero Therapeutics (AKRO), with potential sales of $2B-3B and “clean and strong” Phase II data in nonalcoholic Steatohepatitis. The analyst also sees Scholar Rock (SRRK) as a promising target with a September 22 FDA action date and likely approval in spinal muscular atrophy. In addition, the Phase II obesity data upcoming “could be a clearing event” that could help simplify the stock’s valuation, the analyst tells investors in a research note.