Shares of Akero Therapeutics Rise After Investing in Stock of This Famous Large-Cap Biopharmaceutical Company
- Akero Therapeutic Inc AKRO announced a $25 million equity investment by Pfizer Inc. DFP at $9.90 per share.
- The company also announced a term loan facility allowing Akero to access up to $100 million of Hercules Capital Inc. HTGCof which $10 million will be drawn upon closing of the transaction.
- With existing cash, proceeds will support Akero’s development of efruxifermin, including two ongoing Phase 2b trials in non-alcoholic steatohepatitis (NASH), drug-device combination manufacturing for Phase 3 trials and the launch of a phase 3 trial program.
- If the term loan is fully drawn down, proceeds from these two transactions and budget optimization efforts are expected to fund Akero’s current operating plan through the third quarter of 2024.
- Following the transaction, Pfizer will own approximately 6.7% of Akero’s outstanding common stock.
- For the term loan, Akero can draw an additional $35 million in two separate tranches upon achieving near-term clinical and financial milestones.
- An additional $45 million can be drawn down in a third tranche, subject to Hercules Capital’s approval.
- Price action: Shares of AKRO are up 10.59% at $9.40 in the premarket session of the last check on Thursday.
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