Akero Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Akero Therapeutics, Inc. (AKRO) initiates a $300.0 million public offering of common stock, with a 30-day option for an additional $45.0 million. J.P. Morgan, Morgan Stanley, Jefferies, and Evercore ISI are the joint book-running managers. The offering is subject to market conditions.

Insights

Financial Analyst

Akero Therapeutics' decision to commence an underwritten public offering of $300 million worth of its common stock is a strategic move to raise capital. From a financial perspective, this influx of cash could be indicative of the company's plans to accelerate its drug development programs, expand its operations, or pay off existing debts. The offering size represents a significant capital raise for a clinical-stage company, which typically requires substantial investment to progress through various stages of drug development.

The additional 30-day option granted to underwriters to purchase up to $45 million more in shares could provide a buffer to raise additional funds if the demand is higher than anticipated, reflecting a positive market sentiment towards the company. It's important to note that the success of such offerings often depends on the current market conditions, investor appetite for biotech stocks and the company's own growth prospects.

Investors should consider the dilutive effect of the new shares on their investments and the potential for share price volatility post-offering. The involvement of reputable financial institutions like J.P. Morgan and Morgan Stanley as joint book-running managers could be seen as a vote of confidence in the company's value proposition and future prospects.

Market Research Analyst

The biotechnology sector is known for its high volatility and the significant capital required for research and development. Akero Therapeutics' move to raise capital through a public offering is not uncommon in the industry, especially for a company in the clinical stage. The funds raised are likely earmarked for advancing their pipeline products, which could potentially address unmet medical needs in the metabolic disease space.

Market response to such offerings can be influenced by the company's current pipeline status, historical performance and the perceived potential of its drug candidates. The market will also be observing the uptake of the offering and may adjust the stock's valuation based on the final terms and the success of the capital raise. A successful offering could signal market confidence, while a less successful one might raise concerns about the company's valuation or the market's appetite for risk in the biotech sector.

Legal Expert

The offering is being conducted under an automatically effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC). This approach allows for a more efficient capital-raising process, as the company can offer and sell securities to the public without a lengthy SEC review process each time. However, it is subject to market and other conditions, which means that there's uncertainty about the timing and size of the offering.

It's crucial for investors to understand that the preliminary prospectus supplement will provide important details about the offering, including the use of proceeds and risk factors. The legal language stating that the press release does not constitute an offer to sell securities is standard to comply with SEC regulations and to avoid potential legal issues related to premature offers to sell or buy securities before all necessary regulatory documents have been filed and become available to the public.

SOUTH SAN FRANCISCO, Calif., March 04, 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 that it has commenced an underwritten public offering of $300.0 million of shares of its common stock. All of the shares in the proposed offering are being offered by Akero Therapeutics. In addition, Akero Therapeutics intends to grant the underwriters a 30-day option to purchase up to an additional $45.0 million of shares of its common stock at the public offering price, less underwriting discounts and commissions. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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

The securities 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 proposed 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, 2^nd Floor, 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 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, the grant to the underwriters of an option to purchase additional shares 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 proposed 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

What is Akero Therapeutics, Inc. (AKRO) announcing?

Akero Therapeutics, Inc. (AKRO) is commencing an underwritten public offering of $300.0 million of shares of its common stock.

How much additional stock can be purchased in the offering?

Akero Therapeutics, Inc. (AKRO) intends to grant the underwriters a 30-day option to purchase up to an additional $45.0 million of shares of its common stock.

Who are the joint book-running managers for the proposed offering?

J.P. Morgan, Morgan Stanley, Jefferies, and Evercore ISI are acting as joint book-running managers for the proposed offering by Akero Therapeutics, Inc. (AKRO).

What is the status of the proposed offering?

The proposed offering by Akero Therapeutics, Inc. (AKRO) is subject to market and other conditions, with uncertainty regarding completion, size, or terms.

Where can the preliminary prospectus supplement be obtained?

The preliminary prospectus supplement and accompanying prospectus for the offering by Akero Therapeutics, Inc. (AKRO) 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.