Akero Therapeutics Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Akero Therapeutics, Inc. (AKRO) announced the pricing of an underwritten public offering of 11,000,000 shares of its common stock at $29.00 per share, aiming to raise $319.0 million. The company has also granted underwriters an option to purchase additional shares. This move is part of Akero's strategy to develop treatments for metabolic diseases.

Positive

• Akero Therapeutics announced a public offering of 11,000,000 shares of common stock at $29.00 per share.
• The gross proceeds from the offering are expected to be $319.0 million.
• Underwriters have the option to purchase an additional 1,650,000 shares.
• The offering is part of Akero's focus on developing treatments for metabolic diseases with high unmet medical needs.

Negative

• None.

Insights

Financial Analyst

From a financial perspective, Akero Therapeutics' decision to price an underwritten public offering of 11 million shares at $29.00 each represents a significant capital influx, with gross proceeds anticipated to be $319 million. This move is indicative of the company's strategic efforts to bolster its financial position, likely to fund ongoing and future research and development activities for their metabolic disease treatments. The offering's success will hinge on investor confidence in Akero's pipeline and growth trajectory.

Investors should note the potential for dilution of their holdings due to the increase in the number of shares outstanding. However, this should be weighed against the potential for the capital raised to accelerate the company's product development, which could lead to value creation in the long term. The underwriters' option for an additional 1.65 million shares adds a buffer that could further increase the proceeds, offering a vote of confidence from the underwriters in the company's prospects.

Market Research Analyst

Examining the broader market implications, Akero Therapeutics' public offering can be seen as a response to the high unmet medical need in the metabolic disease space. The significant amount of capital sought suggests confidence in their clinical-stage pipeline's potential. The pricing of the offering at $29.00 per share will be a key factor for institutional and retail investors, as it reflects the company's perceived value and growth potential within the biotech sector.

It's important to consider market conditions and investor sentiment towards the biotech industry, which can be volatile and influenced by regulatory news, clinical trial outcomes and broader market trends. A successful offering could signal market optimism for therapeutic innovation in metabolic diseases, potentially influencing peer companies and sector investment patterns.

Biotech Industry Analyst

From an industry standpoint, Akero Therapeutics' move to raise capital through a public offering aligns with common practices among clinical-stage biotech firms, which often require substantial funding to advance their pipelines through costly clinical trials and towards commercialization. The focus on metabolic diseases, a field characterized by a high unmet medical need, positions the company in a potentially lucrative market.

The decision to proceed with an offering at this time may reflect the company's internal assessments of their clinical data and the readiness to escalate operations. It's critical to assess how this influx of capital will enable Akero to advance its clinical programs and how it aligns with industry norms regarding the valuation of biotech firms at similar stages of development.

SOUTH SAN FRANCISCO, Calif., March 05, 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 pricing of an underwritten public offering of 11,000,000 shares of its common stock at a public offering price of $29.00 per share. All of the shares in the offering are being offered by Akero Therapeutics. In addition, Akero Therapeutics has granted the underwriters a 30-day option to purchase up to an additional 1,650,000 shares of its common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be $319.0 million, excluding any exercise of the underwriters’ option to purchase additional shares. The offering is expected to close on or about March 8, 2024, subject to the satisfaction of customary closing conditions.

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

The shares of common stock are being offered by Akero Therapeutics pursuant to an automatically effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (SEC). A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC on March 4, 2024. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and may be obtained, when available, 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, 2^nd 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.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the closing of Akero’s anticipated public offering. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, uncertainties related to market conditions and statements regarding the timing, size and expected gross proceeds of the offering, the satisfaction of customary closing conditions related to the offering and sale of securities, and Akero Therapeutics’ ability to complete the offering. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Akero’s most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC, as well as discussions of potential risks, uncertainties, and other important factors in Akero’s other filings with the SEC, including those contained or incorporated by reference in the preliminary prospectus supplement and accompanying prospectus related to the offering to be filed with the SEC. Any forward-looking statements contained in this press release represent Akero’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Akero explicitly disclaims any obligation to update any forward-looking statements, except as required by law.

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 are being offered in Akero Therapeutics' public offering?

Akero Therapeutics is offering 11,000,000 shares of its common stock in the public offering.

At what price are the shares being offered in Akero Therapeutics' public offering?

The shares are being offered at a price of $29.00 per share in Akero Therapeutics' public offering.

What is the expected gross proceeds from Akero Therapeutics' public offering?

The expected gross proceeds from the offering are $319.0 million.

Who has the option to purchase additional shares in Akero Therapeutics' public offering?

Underwriters have the option to purchase up to an additional 1,650,000 shares of Akero Therapeutics' common stock.

What is the focus of Akero Therapeutics in developing treatments?

Akero Therapeutics focuses on developing treatments for patients with serious metabolic diseases characterized by high unmet medical needs.