A view of the logo of Novo Nordisk at the company’s office in Bagsvaerd, on the outskirts of Copenhagen, Denmark, March 8, 2024.\u00a0<\/p>\n
Tom Little | Reuters<\/p>\n
Novo Nordisk<\/a> said on Thursday it would buy U.S.-based Akero Therapeutics<\/a> for up to $5.2 billion to gain access to a promising liver disease drug candidate, in the first major deal by the Danish drugmaker’s new CEO to spur growth.<\/p>\n Mike Doustdar, who took the helm at the Wegovy maker in July, has signaled a focus on new, highly effective obesity and diabetes drugs that can also treat related cardiometabolic conditions such as MASH, rather than expanding into other areas.<\/p>\n Akero’s drug candidate, efruxifermin, is currently in late-stage trials for treating metabolic dysfunction-associated steatohepatitis (MASH).<\/p>\n “We view this deal, coupled with recent internal restructuring at Novo, positively as Doustdar works to bring the ship back on course,” said BMO Capital analyst Evan Seigerman.<\/p>\n Under Doustdar, tasked with stemming market share losses to U.S. rival Eli Lilly<\/a>, the company last month said it would cut 9,000 jobs.<\/p>\n High growth potential<\/p>\n Efruxifermin has shown potential in reversing liver scarring in MASH patients in earlier studies.<\/p>\n Doustdar called it “an important building block” for future growth, especially as Novo prepares for the loss of exclusivity on semaglutide, the active ingredient in blockbuster drug Wegovy, starting next year in regions like India and China.<\/p>\n Lukas Leu, a portfolio manager at Novo Nordisk shareholder ATG Healthcare, said it was encouraging to see Novo seal a major deal and expand in a high-growth area, where rivals such as Roche<\/a> and GSK<\/a> have also made recent moves.<\/p>\n In August, Wegovy became the first GLP-1 drug to receive accelerated approval for MASH in the U.S., where the disease affects around 5% of adults.<\/p>\n Novo has discontinued its MASH candidate, zalfermin, which belonged to the same class of treatments as efruxifermin.<\/p>\n