Novo Nordisk Acquires Akero, Boosting Viking Therapeutics and Genfit Stocks Amid M&A Activity in MASH Space

Novo Nordisk's acquisition of Akero has boosted shares of biotech companies developing treatments for metabolic dysfunction-associated steatohepatitis (MASH). Viking Therapeutics, Genfit, and Sagimet have seen gains as the MASH space continues to see activity. The deal highlights the growing interest in treatments for MASH, a liver disease that affects millions of people worldwide.

Novo Nordisk's recent acquisition of Akero Therapeutics has sparked significant interest in the metabolic dysfunction-associated steatohepatitis (MASH) treatment space. The deal, valued at up to $5.2 billion, has led to a surge in share prices for other biotech companies developing MASH therapies, including Viking Therapeutics, Genfit, and Sagimet Biosciences. The acquisition underscores the growing importance of MASH treatments, a liver disease affecting millions of people globally.

The acquisition comes on the heels of a series of MASH-related deals, with Roche acquiring 89bio for up to $3.5 billion and Madrigal Pharmaceuticals securing FDA approval for its MASH therapy, Rezdiffra. Novo Nordisk's acquisition of Akero, which involves a late-stage drug candidate for MASH, efruxifermin, highlights the potential of FGF21 analogs in addressing fibrosis in MASH.

The deal's contingent value right, which adds another $6 per share upon FDA approval of efruxifermin for compensated cirrhosis due to MASH, further underscores Novo Nordisk's commitment to advancing MASH treatments. The company expects to complete the acquisition by the end of 2025, pending shareholder and regulatory approvals.

The acquisition also signals a shift in Novo Nordisk's strategy, with CEO Mike Doustdar emphasizing the importance of external innovation. "We should not have a 'not invented here' syndrome and be quite open to other people's science," Doustdar said, noting that the company had previously decided against Akero after a prior review indicated it wasn't the ideal time for a deal.

The MASH market is expected to continue seeing significant activity, with multiple late-stage assets and ongoing clinical trials. The growing interest in MASH treatments, driven by the increasing prevalence of the disease and the unmet medical need, is likely to attract further investment and innovation.