Novo Expands Into Liver Disease Treatments

Novo Nordisk (NYSE: NVO) said Thursday it plans to acquire Akero Therapeutics (NASDAQ: AKRO) for up to $5.2 billion, marking another major move by big pharma into the metabolic and liver disease space.

Novo will pay $54 per share in cash, a 15% premium to Akero’s previous closing price of $46.49, valuing the initial deal at $4.7 billion.
Akero shareholders could receive an additional $500 million in milestone payments if the company’s lead drug candidate, efruxifermin (EFX), wins U.S. approval to treat compensated cirrhosis caused by MASH (metabolic dysfunction-associated steatohepatitis).

Akero’s Late-Stage Drug Pipeline

Akero’s experimental treatment EFX has shown promise in improving liver fibrosis and inflammation linked to MASH, a chronic liver disease affecting millions globally.

The company is currently conducting Phase 3 clinical trials, and the potential regulatory approval would add a new growth engine for Novo.
The acquisition would help Novo diversify beyond its flagship Ozempic and Wegovy obesity and diabetes products.

Industry Trend: Big Pharma Eyes MASH Market

The deal highlights rising competition in the MASH and metabolic disorder segment:

Roche (RHHBY) in September announced a $2.4B acquisition of 89bio for its own MASH drug candidate.
GSK (GSK) in July completed a $1.2B licensing deal with Boston Pharmaceuticals for another MASH treatment.

Market Reaction

Akero shares surged 18% in premarket trading following the announcement.
Novo Nordisk shares dipped 1%, continuing a broader year-to-date decline of over 30% as competition in the GLP-1 weight-loss market intensifies.

Strategic Implications

Novo’s acquisition underscores its intent to expand beyond diabetes and obesity into adjacent therapeutic areas. The MASH market is expected to be worth over $20B annually by the early 2030s, as no approved treatments currently exist.