Novo Nordisk acquires Akero Therapeutics, driving stock surge of 19%

Pharmaceutical giant Novo Nordisk has struck a headline-making acquisition, agreeing to purchase Akero Therapeutics in a deal valued at up to $5.2 billion. Following the announcement, Akero’s stock surged by 19%, reflecting investor optimism about the agreement.

Under the terms of the deal, Novo Nordisk will pay Akero shareholders $54 per share in cash, representing a 16.2% premium over Akero’s last closing price of $46.49. An additional $6 per share will be paid if Akero’s experimental drug, efruxifermin, receives full U.S. regulatory approval by June 30, 2031, for treating compensated cirrhosis caused by metabolic dysfunction-associated steatohepatitis (MASH).

A Strategic Move to Address Unmet Medical Needs

The acquisition is a strategic step for Novo Nordisk as it seeks to broaden its portfolio in addressing serious metabolic diseases marked by high unmet needs. Akero’s lead drug candidate, efruxifermin, is being developed to combat fibrosis and cirrhosis in patients with MASH, a severe fatty liver disease.

"MASH destroys lives silently. Efruxifermin has the potential to change that by reversing liver damage", said Mike Doustdar, President and CEO of Novo Nordisk. "If approved, we believe it could become a cornerstone therapy, alone or together with Wegovy, to tackle one of the fastest-growing metabolic diseases of our time."

The transaction, unanimously approved by Akero’s Board of Directors, is expected to close by the end of the year, marking a significant milestone in Novo Nordisk’s ambitions to expand its reach in metabolic care.

Challenges Amid Growth

While Novo Nordisk continues to invest in niche opportunities like Akero, the company is also navigating challenges with its existing product portfolio. Its blockbuster obesity drug, Wegovy, faces fierce competition from Eli Lilly’s treatments, including Mounjaro and Zepbound. The company has also been grappling with the financial strain of copycat versions of Wegovy produced by compounding pharmacies, which arose during supply shortages.

In response to mounting pressures, Novo Nordisk is undergoing significant cost-cutting measures. CEO Mike Doustdar, who assumed leadership in July, recently announced plans to reduce the company’s workforce by roughly 9,000 jobs, aiming to save 8 billion Danish kroner (approximately $1.25 billion) annually by 2026. Despite these efforts, Novo Nordisk’s stock has struggled throughout 2025, with investors reacting to profit warnings and reduced sales volume.

The acquisition of Akero Therapeutics represents a calculated move to bolster Novo Nordisk’s pipeline and counterbalance these challenges. By focusing on innovative treatments like efruxifermin, the company aims to position itself as a leader in providing solutions for complex metabolic diseases. Time will tell whether this strategy will help Novo Nordisk regain momentum in the competitive pharmaceutical market.

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