Morgan Stanley says zalfermin discontinuation has positive readthrough for Akero

Morgan Stanley notes that Novo Noridisk (NVO) announced along with reporting Q2 results this morning that the company is discontinuing development of zalfermin following completion of its Phase 2 trial in metabolic dysfunction associated steatohepatitis due to a lack of efficacy. The firm sees a positive readthrough to Akero’s (AKRO) EFX as the news further bolsters its competitive positioning within the FGF21 class and sees the Phase 3 SYNCHRONY Real World MASH data as the next key catalyst. Morgan Stanley has an Overweight rating and $84 price target on shares of Akero Therapeutics, which are up $2.19, or 4%, to $51.75 in morning trading.