Akero Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Akero Therapeutics (NASDAQ: AKRO), a clinical-stage company focused on metabolic disease treatments, has announced a proposed public offering of $300.0 million of common stock shares. The company plans to grant underwriters a 30-day option to purchase up to an additional $45.0 million of shares at the public offering price, less underwriting discounts and commissions.

The offering will be managed by J.P. Morgan, Morgan Stanley, and Jefferies as joint book-running managers. The securities will be offered through an automatically effective shelf registration statement previously filed with the SEC. The completion of the offering is subject to market and other conditions, with no guarantee of completion or final terms.

Positive

• Large capital raise potential of $300 million with additional $45 million option
• Strong underwriting support from major investment banks

Negative

• Potential dilution of existing shareholders' value
• Uncertainty regarding offering completion and final terms

Insights

Financial Analyst

This $300.0 million public offering, with an additional $45.0 million option, represents a strategic move to strengthen Akero's financial position. The timing is particularly noteworthy as clinical-stage biotech companies typically raise capital when they need to fund expensive late-stage trials or prepare for potential commercialization.

The selection of top-tier underwriters - J.P. Morgan, Morgan Stanley and Jefferies - signals strong institutional confidence in Akero's prospects. These banks typically undertake extensive due diligence before leading such offerings, providing implicit validation of the company's programs and potential.

However, investors should consider several key factors:

• This offering will likely result in significant dilution for existing shareholders, though the exact impact depends on the pricing
• The automatic effectiveness of the shelf registration suggests careful preparation and timing of this capital raise
• Biotech stocks typically experience temporary pressure during secondary offerings, creating potential volatility

While dilution is a concern, clinical-stage biotech companies require substantial capital to advance their pipelines. This raise could provide Akero with an extended cash runway, reducing future financing risk and allowing management to focus on clinical execution rather than immediate funding needs.

SOUTH SAN FRANCISCO, Calif., Jan. 27, 2025 (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. In addition, Akero 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 and Jefferies are acting as joint book-running managers for the proposed offering.

The securities are being 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 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; or 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 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). Akero's lead product candidate, efruxifermin (EFX), is currently being evaluated in three ongoing Phase 3 clinical studies: SYNCHRONY Histology in patients with pre-cirrhotic MASH (F2-F3 fibrosis), SYNCHRONY Outcomes in patients with compensated cirrhosis due to MASH, and SYNCHRONY Real-World in patients with MASH or MASLD (Metabolic Dysfunction Associated Steatotic Liver Disease). 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 compensated 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’s 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
Precision AQ
212.362.1200
christina.tartaglia@precisionaq.com

Media Contact:
Peg Rusconi
Deerfield Group
617.910.6217
Peg.rusconi@deerfieldgroup.com

FAQ

How much is Akero Therapeutics (AKRO) planning to raise in its public offering?

Akero Therapeutics is planning to raise $300.0 million through a public offering of common stock, with an additional 30-day option for underwriters to purchase up to $45.0 million more shares.

Who are the underwriters for AKRO's 2025 public offering?

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

What is the purpose of AKRO's 2025 stock offering?

The offering aims to raise capital for Akero Therapeutics, which develops treatments for patients with serious metabolic disease marked by high unmet medical need.

How will AKRO's public offering affect existing shareholders?

The public offering may dilute existing shareholders' value as new shares will be issued, potentially decreasing the ownership percentage of current stockholders.

When will AKRO's 2025 public offering be completed?

The completion date is not specified as the offering is subject to market and other conditions, with no assurance as to whether or when it may be completed.