Novo Nordisk acquires $5.2 billion dollar US biotech Akero in major obesity and liver disease push

Novo Nordisk, the Danish pharmaceutical giant best known for developing the weight-loss injection Wegovy, has announced a landmark deal to acquire US-listed biotech Akero Therapeutics for up to $5.2 billion. This acquisition marks the first major move by Novo Nordisk’s new chief executive, Mike Doustdar, as the company intensifies its focus on treatments for metabolic diseases linked to obesity.

Akero Therapeutics is at the forefront of developing efruxifermin, a promising new therapy for metabolic dysfunction-associated steatohepatitis (Mash), a serious form of fatty liver disease. As the pharmaceutical industry races to expand their pipelines targeting complications arising from obesity, acquisitions in this space have accelerated. Only last month, Roche committed to acquiring 89bio, a San Francisco-based biotech also specialising in late-stage Mash therapies, for an undisclosed sum. Meanwhile, GSK has stepped into the fray, securing the lead asset of Boston Pharmaceuticals for up to $2 billion earlier in the year.

Novo Nordisk’s deal with Akero unfolds as the firm seeks to regain its edge in the high-stakes and increasingly competitive obesity drugs market. Following a period of change marked by the abrupt departure of the previous CEO and a subsequent restructuring effort that saw around 9,000 jobs cut, the company has been under considerable investor scrutiny. Its market valuation, which soared to $600 billion after Wegovy’s breakthrough approval in 2021, has since slipped due to increased competition from rivals such as Eli Lilly and supply issues that enabled the rise of cheaper copycat drugs.

The rationale behind the Akero acquisition is underpinned by the close link between Mash and cardiometabolic conditions. More than 40 per cent of Mash patients also suffer from type 2 diabetes, and over 80 per cent are overweight or obese. This overlap fits squarely with Novo’s strategic expertise in obesity and diabetes treatments. Doustdar expressed optimism, stating, “Mash destroys lives silently and efruxifermin has the potential to change that by reversing liver damage.”

Efruxifermin is currently being evaluated as a once-weekly injection across three phase III clinical trials. Should regulatory approval be secured, Novo Nordisk believes efruxifermin could become a linchpin treatment—either on its own or in combination with Wegovy—as the company works to address one of today’s fastest-growing metabolic diseases. The transaction will see Novo Nordisk pay $54 per share in cash, amounting to $4.7 billion, with an additional $6 per share payable if US approval is granted. The deal will primarily be debt-financed and is expected to raise research and development costs, impacting next year’s operating profit growth, a trend reflected in a modest decline in Novo shares following the announcement.

This acquisition cements Novo Nordisk’s determination to lead in next-generation therapies for both obesity and its related complications, betting that innovation and an expanding portfolio will maintain its status as a global pharmaceutical powerhouse despite mounting competitive pressures.