South San Francisco-based biotech firm, Akero Therapeutics (NASDAQ:AKRO), experienced a significant 58% decrease in its share prices on Tuesday. The decline followed the release of an interim report on its Phase 2b study of efruxifermin, a drug candidate intended to treat nonalcoholic steatohepatitis (NASH).
The primary endpoint of the study was fibrosis improvement, which was observed at the 36-week point in the ongoing 96-week study. Only 22% of patients in the 28-milligram dose group and 24% in the 50-milligram group saw at least a one-stage improvement in liver fibrosis without any worsening of NASH. This compared unfavorably to the 14% improvement seen in the placebo group.
Akero, with a market cap of $918.55 million according to InvestingPro data, remains hopeful for further improvements post the long-term follow-up period. NASH, which affects approximately 17 million Americans, currently has no FDA-approved treatments, making it a significant area of focus for biotech firms like Akero.
The company's share prices fell sharply from Monday's close of $48.54 to $20.32 in premarket trading following the release of the interim report, as reported by Colin Kellaher. This drop reflects investor concerns over the efficacy of efruxifermin and its potential as a treatment for NASH. This drop is in line with an InvestingPro Tip that notes Akero's stock price often moves in the opposite direction of the market.
Despite the recent price drop, Akero has seen a large price uptick over the last six months, another point noted by InvestingPro Tips. The company is also trading near its 52-week low, which could present an opportunity for investors looking for potential upside.
Additionally, Akero holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, which could provide some reassurance to investors regarding the company's financial stability.
For more in-depth investing tips, visit InvestingPro. There, you will find nine additional tips for Akero and many more for other companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.