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Akero Therapeutics Inc (AKRO)
NASDAQ:AKRO
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Akero Therapeutics (AKRO) AI Stock Analysis

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AKRO

Akero Therapeutics

(NASDAQ:AKRO)

Rating:60Neutral
Price Target:
Akero's stock score reflects strong technical momentum and positive corporate developments, which are key drivers. However, financial challenges with no current revenue and operational losses weigh down the overall score. The promising clinical trial results provide a potential catalyst for future growth.
Positive Factors
Clinical Trials
The more impactful catalyst for Akero is coming with topline data from SYNCHRONY Histology, a 52-week trial in biopsy-confirmed F2/3 patients; if positive, data from the trial will support accelerated approval in the US.
Competitive Positioning
The discontinuation of zalfermin by Novo Nordisk leaves Akero's EFX in a strong competitive position in the MASH market.
Market Potential
There is currently only one FDA approved treatment for F2/F3 MASH, highlighting the potential for Akero's EFX in addressing an unmet need.
Negative Factors
Financial Challenges
A reported net loss of $70.5M in 2Q25 reflects financial challenges for the company.
Risk Factors
EFX's AEs are consistent with the known class effects of FGF21 analogs – primarily mild to moderate transient GI events.

Akero Therapeutics (AKRO) vs. SPDR S&P 500 ETF (SPY)

Akero Therapeutics Business Overview & Revenue Model

Company DescriptionAkero Therapeutics, Inc., a cardio-metabolic nonalcoholic steatohepatitis (NASH) company, engages in the development of medicines designed to restore metabolic balance and improve overall health. The company's lead product candidate is efruxifermin (EFX), an analog of fibroblast growth factor 21, which protects against cellular stress and regulates metabolism of lipids, carbohydrates, and proteins throughout the body. It also conducts a Phase 2a clinical trial, the BALANCED study, to evaluate EFX in the treatment of biopsy-confirmed NASH patients. The company was formerly known as Pippin Pharmaceuticals, Inc. and changed its name to Akero Therapeutics, Inc. in May 2018. Akero Therapeutics, Inc. was incorporated in 2017 and is headquartered in South San Francisco, California.
How the Company Makes MoneyAkero Therapeutics makes money through the development and commercialization of its drug candidates, primarily targeting NASH. The company aims to generate revenue through the successful approval and subsequent sales of its lead product candidate, Efruxifermin (EFX). Akero may also engage in partnerships or collaborations with other pharmaceutical companies to co-develop or license its technology, which can provide additional revenue streams and funding for its research and development activities. As a clinical-stage company, Akero currently does not generate significant revenue from product sales but relies on funding through public offerings, private investments, grants, and collaborations to finance its operations and continue the development of its pipeline.

Akero Therapeutics Financial Statement Overview

Summary
Akero Therapeutics is in a growth phase typical of biotech companies, prioritizing R&D over immediate profitability. Strong equity and cash reserves provide a cushion against the high cash burn. However, the absence of revenue and continued operational losses pose risks that need addressing for long-term sustainability.
Income Statement
30
Negative
Akero Therapeutics has consistently reported zero revenue, indicating a focus on R&D typical for biotech firms in early stages. The company faces widening net losses, with the latest year showing a significant increase in EBIT and EBITDA losses. Despite this, the company is investing in future growth, reflected by its increasing expenditures.
Balance Sheet
65
Positive
The balance sheet reveals strong equity with a debt-to-equity ratio close to zero, signifying low leverage and strong financial foundation. The company's cash reserves have increased, supporting operations without significant debt reliance, although equity dilution might be a concern.
Cash Flow
50
Neutral
Operating cash flow remains negative, highlighting ongoing cash burn. However, cash position is bolstered by substantial financing activities, indicating effective capital raising strategies. Free cash flow growth is negative, reflecting increased operational investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.00K0.000.000.000.000.00
Gross Profit1.00K-18.00K-29.00K-260.00K-244.00K-213.00K
EBITDA-279.17M-285.42M-148.63M-111.03M-100.53M-78.99M
Net Income-283.96M-252.06M-151.76M-108.91M-100.74M-79.19M
Balance Sheet
Total Assets1.11B825.89M580.27M356.57M195.55M273.34M
Cash, Cash Equivalents and Short-Term Investments742.32M743.08M550.01M351.45M188.26M268.39M
Total Debt37.19M36.12M26.30M10.95M1.52M1.81M
Total Liabilities83.33M75.77M44.97M30.01M26.44M14.63M
Stockholders Equity1.03B750.11M535.31M326.56M169.11M258.71M
Cash Flow
Free Cash Flow-253.42M-230.11M-145.37M-92.52M-79.68M-70.95M
Operating Cash Flow-253.42M-230.11M-145.37M-92.52M-79.68M-70.80M
Investing Cash Flow-314.50M-109.71M-223.62M-63.83M42.28M-9.76M
Financing Cash Flow478.02M445.85M353.32M255.63M602.00K203.11M

Akero Therapeutics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price48.19
Price Trends
50DMA
50.97
Negative
100DMA
47.52
Positive
200DMA
42.71
Positive
Market Momentum
MACD
-0.71
Positive
RSI
45.87
Neutral
STOCH
48.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKRO, the sentiment is Neutral. The current price of 48.19 is below the 20-day moving average (MA) of 48.91, below the 50-day MA of 50.97, and above the 200-day MA of 42.71, indicating a neutral trend. The MACD of -0.71 indicates Positive momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 48.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AKRO.

Akero Therapeutics Risk Analysis

Akero Therapeutics disclosed 18 risk factors in its most recent earnings report. Akero Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
General Risk Factors Q1, 2025
2.
Risks Related to Our Financial Condition and Need for Additional Capital Q1, 2025
3.
Risks Related to Our Indebtedness Q1, 2025

Akero Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
730.42%31.63%
60
Neutral
$3.85B-31.14%-11.39%
58
Neutral
$3.93B7.1433.08%96.00%
55
Neutral
$6.72B-1334.54%53.55%30.87%
51
Neutral
$7.83B-0.18-40.10%2.29%21.46%-2.03%
46
Neutral
$4.99B-25.34%-81.18%-69.19%
37
Underperform
$3.70B-69.53%-70.28%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AKRO
Akero Therapeutics
48.19
21.30
79.21%
PTCT
PTC Therapeutics
49.79
14.26
40.14%
SLNO
Soleno Therapeutics
68.41
21.85
46.93%
CRSP
Crispr Therapeutics AG
53.05
5.50
11.57%
RYTM
Rhythm Pharmaceuticals
102.30
56.20
121.91%
SWTX
Springworks Therapeutics
46.99
6.06
14.81%

Akero Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Akero Therapeutics Reports Promising Phase 2b Study Results
Positive
Jan 27, 2025

On January 27, 2025, Akero Therapeutics reported promising preliminary results from their Phase 2b SYMMETRY study, which evaluated the efficacy of efruxifermin (EFX) in patients with compensated cirrhosis due to MASH. The study showed significant improvements in fibrosis without worsening MASH, with 39% of patients in the 50mg EFX group showing positive results compared to 15% in the placebo group. These findings underscore the potential of EFX as a transformative treatment, marking a notable advancement in addressing cirrhosis caused by MASH and enhancing Akero’s position in the metabolic disease treatment landscape. The treatment was generally well-tolerated, and no serious adverse events related to EFX were reported.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 01, 2025