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

Rhea-AI Summary

Akero Therapeutics (AKRO) has successfully closed its upsized public offering, issuing 8,846,154 shares at $26.00 each, raising approximately $230 million in gross proceeds. This offering included the full exercise of an underwriters' option for an additional 1,153,846 shares. J.P. Morgan, Morgan Stanley, and Jefferies managed the offering with Canaccord Genuity as a lead manager. The company is focused on developing treatments for serious metabolic diseases, notably NASH, with its lead candidate, efruxifermin (EFX), currently in two Phase 2b trials.

Positive

• Successful public offering raised approximately $230 million.
• Full exercise of underwriters' option for additional shares indicates strong market demand.
• Akero's focus on NASH treatment positions it in a high-unmet medical need area.

Negative

• Potential for shareholder dilution due to the issuance of new shares.

SOUTH SAN FRANCISCO, Calif., Sept. 19, 2022 (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 upsized underwritten public offering of 8,846,154 shares of its common stock at a public offering price of $26.00 per share, which includes the exercise in full by the underwriters of their option to purchase up to an additional 1,153,846 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 $230.0 million.

J.P. Morgan, Morgan Stanley, and Jefferies acted as joint book-running managers for the offering. Canaccord Genuity acted as lead manager and H.C. Wainwright & Co. acted as co-manager for the offering.

The shares of common stock were offered by Akero pursuant to a shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (SEC) and automatically became effective upon filing. A final prospectus supplement and accompanying prospectus relating to and describing the terms of the offering were filed with the SEC on September 15, 2022. The final prospectus supplement and accompanying prospectus relating to the offering may be obtained from: 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; and Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone at (877) 821-7388, or by email at prospectus_department@jefferies.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 non-alcoholic steatohepatitis (NASH), a disease without any approved therapies. Akero's lead product candidate, efruxifermin (EFX), is a differentiated Fc-FGF21 fusion protein that has been engineered to mimic the balanced biological activity profile of native FGF21, an endogenous hormone that alleviates cellular stress and regulates metabolism throughout the body. EFX is designed to offer convenient once-weekly subcutaneous dosing. The consistency and magnitude of observed effects position EFX to be a potentially best-in-class medicine, if approved, for treatment of NASH. EFX is currently being evaluated in two Phase 2b clinical trials: the HARMONY study in patients with pre-cirrhotic NASH (F2-F3 fibrosis), and the SYMMETRY study in patients with cirrhotic NASH (F4 fibrosis, compensated). EFX is also being evaluated in an expansion cohort of the SYMMETRY study, comparing the safety and tolerability of EFX to placebo when added to an existing GLP-1 receptor agonist in patients with pre-cirrhotic NASH (F1-F3 fibrosis) and Type 2 diabetes.

Investor Contact:
Christina Tartaglia
212.362.1200
IR@akerotx.com

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

FAQ

What details were announced in Akero's public offering on September 19, 2022?

Akero Therapeutics announced the closing of an upsized public offering of 8,846,154 shares at $26.00 each, raising about $230 million in gross proceeds.

Who managed Akero's stock offering?

J.P. Morgan, Morgan Stanley, and Jefferies acted as joint book-running managers, with Canaccord Genuity as the lead manager.

What is the purpose of Akero's public offering?

The funds raised will support Akero's continued development of treatments for serious metabolic diseases, including its lead candidate for NASH.

What phase are Akero's clinical trials for efruxifermin (EFX)?

Efruxifermin (EFX) is currently being evaluated in two Phase 2b clinical trials for NASH.

What is the significance of the offering for Akero shareholders?

While the offering raises capital for development, it may also lead to shareholder dilution due to the increase in the number of shares outstanding.