Akero Therapeutics Announces Closing of Public Offering of Common Stock and Full Exercise of Underwriters' Option to Purchase Additional Shares

Rhea-AI Summary

Akero Therapeutics, Inc. (AKRO) successfully closed a public offering of 12,650,000 shares of common stock at $29.00 per share, raising approximately $366.9 million. The underwriters exercised their option to purchase additional shares, leading to a significant increase in gross proceeds. The offering was managed by top firms like J.P. Morgan, Morgan Stanley, Jefferies, and Evercore ISI.

Insights

Financial Analyst

Akero Therapeutics' successful closing of a substantial public offering is a significant financial event that merits attention from various stakeholders. The gross proceeds of approximately $366.9 million, prior to deductions for underwriting discounts, commissions and other expenses, suggest robust market confidence in the company's potential to develop treatments for metabolic diseases with high unmet medical needs. The full exercise of the underwriters' option to purchase additional shares indicates strong investor demand.

The infusion of capital is likely to bolster Akero's balance sheet, providing the company with the financial resources necessary to advance its clinical programs and potentially accelerate the development of its pipeline. It is important to note that while the immediate liquidity is a positive sign, it also dilutes existing shareholders. The long-term impact of this dilution will largely depend on the company's ability to leverage the raised capital to achieve milestones that enhance shareholder value.

Market Research Analyst

The participation of prominent financial institutions such as J.P. Morgan, Morgan Stanley, Jefferies and Evercore ISI as joint book-running managers reflects a level of institutional support and confidence in Akero Therapeutics' market proposition. The pricing of the public offering at $29.00 per share provides a reference point for the market's valuation of the company and may influence investor perception and stock performance in the near term.

From a market dynamics perspective, the successful offering could signal to other biotech firms that the capital markets are receptive to funding clinical-stage companies in the current economic environment. This could encourage similar companies to pursue public offerings or other forms of capital raising to fund their operations and research endeavors.

Biotech Industry Analyst

The metabolic disease sector is marked by a high unmet medical need, which provides a substantial opportunity for companies like Akero Therapeutics that are developing transformational treatments. The capital raised through this offering is critical for funding ongoing research and development efforts, which are inherently resource-intensive and high-risk. The successful capital raise is a testament to the company's strategic positioning within the biotech industry and the potential market demand for its therapies.

Investors will be closely monitoring how effectively Akero deploys the new funds towards advancing its clinical trials. The outcome of these trials will be pivotal in determining the company's future trajectory and the long-term return on investment for the stakeholders involved in this public offering.

SOUTH SAN FRANCISCO, Calif., March 08, 2024 (GLOBE NEWSWIRE) -- Akero Therapeutics, Inc. (Nasdaq: AKRO), a clinical-stage company developing transformational treatments for patients with serious metabolic disease marked by high unmet medical need, announced today the closing of its previously announced underwritten public offering of 12,650,000 shares of its common stock at a public offering price of $29.00 per share, which includes the exercise in full by the underwriters of their option to purchase up to an additional 1,650,000 shares of common stock in this offering. The gross proceeds from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, were approximately $366.9 million.

J.P. Morgan, Morgan Stanley, Jefferies and Evercore ISI acted as joint book-running managers for the offering.

The shares of common stock were offered by Akero pursuant to an automatically effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (SEC). A final prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC on March 6, 2024. The final prospectus supplement and accompanying prospectus relating to the offering may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at prospectus_department@jefferies.com; or Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com; or by accessing the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Akero Therapeutics

Akero Therapeutics is a clinical-stage company developing transformational treatments for patients with serious metabolic diseases marked by high unmet medical need, including metabolic dysfunction-associated steatohepatitis (MASH), a disease without any approved therapies. Akero’s lead product candidate, efruxifermin (EFX), is currently being evaluated in two ongoing Phase 3 clinical trials: the SYNCHRONY Histology study in patients with pre-cirrhotic MASH (F2-F3 fibrosis) and the SYNCHRONY Real-World study in patients with MASH or MASLD. A third clinical trial, the SYNCHRONY Outcomes study in patients with cirrhosis due to MASH, is expected to be initiated in the first half of 2024. The Phase 3 SYNCHRONY program builds on the results of two Phase 2b clinical trials, the HARMONY study in patients with pre-cirrhotic MASH and the SYMMETRY study in patients with cirrhosis due to MASH.

Investor Contact:
Christina Tartaglia
212.362.1200
IR@akerotx.com

Media Contact:
Sarah O’Connell
732.456.0092
soconnell@vergescientific.com

FAQ

How many shares were offered in Akero Therapeutics' (AKRO) public offering?

Akero Therapeutics offered 12,650,000 shares of its common stock in the public offering.

What was the public offering price per share for Akero Therapeutics (AKRO)?

The public offering price per share for Akero Therapeutics was $29.00.

How much did Akero Therapeutics (AKRO) raise in gross proceeds from the offering?

Akero Therapeutics raised approximately $366.9 million in gross proceeds from the offering.

Which firms acted as joint book-running managers for Akero Therapeutics' (AKRO) offering?

J.P. Morgan, Morgan Stanley, Jefferies, and Evercore ISI acted as joint book-running managers for Akero Therapeutics' offering.

Where can the final prospectus supplement and accompanying prospectus for Akero Therapeutics' (AKRO) offering be obtained?

The final prospectus supplement and accompanying prospectus for Akero Therapeutics' offering can be obtained from various sources including J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Jefferies LLC, Evercore Group L.L.C., or the SEC's website.