Novo Nordisk to acquire Akero Therapeutics for its experimental liver disease drug
![FILE PHOTO: A view shows a Novo Nordisk sign outside their office in Bagsvaerd, on the outskirts of Copenhagen, Denmark, July 14, 2025. [Photo: Tom Little/Reuters]](/_next/image?url=https%3A%2F%2Fimages.fastcompany.com%2Fimage%2Fupload%2Ff_webp%2Cc_fit%2Cw_1920%2Cq_auto%2Fwp-cms-2%2F2025%2F10%2F2025-10-09T105132Z_1_LYNXNPEL980I4_RTROPTP_4_AKERO-M-A-NOVO-NORDISK.jpg&w=1920&q=75)
News Summary
Novo Nordisk announced on Thursday it would acquire U.S.-based Akero Therapeutics for up to $5.2 billion, adding a promising experimental liver disease drug to its pipeline. This marks the first major deal by new CEO Mike Doustdar, aiming to boost growth and counter intense competition from U.S. rival Eli Lilly. Akero is conducting a late-stage trial for its drug, efruxifermin, which targets severe liver scarring (cirrhosis) caused by metabolic dysfunction-associated steatohepatitis (MASH). Novo Nordisk believes efruxifermin could be a breakthrough in fatty liver disease treatment and become a “cornerstone” therapy, either alone or in combination with Wegovy. Under the terms, Novo will pay Akero shareholders $54 per share upfront in cash, representing a premium of about 16.2% to Akero’s last closing price. An additional $6 per share will be paid if efruxifermin secures full U.S. approval for the condition by June 30, 2031. Following the announcement, Akero shares surged over 19% in premarket trading, while Novo’s Denmark-listed shares declined nearly 2%. Some Novo investors had expressed desires for the company to invest heavily in R&D to build its future drug pipeline, revive confidence with a growth story, and diversify beyond weight loss and diabetes. Doustdar, however, stated the company's focus remains on developing next-generation obesity and diabetes drugs that can also treat related cardiometabolic conditions like MASH, rather than expanding into other disease areas.
Background
Novo Nordisk is a leading Danish pharmaceutical company globally recognized for its innovative drugs in diabetes and obesity treatment, particularly its highly successful GLP-1 receptor agonists Wegovy (for weight loss) and Ozempic (for diabetes). However, this success has also led to questions about its pipeline's over-reliance on a single class of therapies and its future growth potential. Eli Lilly, its main competitor, also holds a significant position in the diabetes and obesity drug market, leading to intense rivalry. To address this competition and maintain growth momentum, Novo Nordisk's new CEO, Mike Doustdar, who took over in July, has implemented a series of strategic moves, including cutting 9,000 jobs. He has clearly stated a focus on developing next-generation drugs that can treat related cardiometabolic conditions like MASH, rather than completely diverting from its core therapeutic areas.
In-Depth AI Insights
How does this acquisition fit into Novo Nordisk's long-term growth strategy and its rivalry with Eli Lilly? - This deal indicates Novo Nordisk is actively seeking growth avenues beyond its current GLP-1 portfolio, yet without fully abandoning its core metabolic disease focus. MASH is considered a highly related comorbidity of obesity and diabetes. Therefore, acquiring Akero and its MASH drug efruxifermin is a high-stakes, high-reward strategy of "adjacent" diversification built upon Novo Nordisk's existing expertise. - New CEO Doustdar's moves, including previous job cuts, point to a more streamlined and focused strategy of deepening its presence in the cardiometabolic disease space, rather than indiscriminate expansion. By potentially developing a "Wegovy + efruxifermin" combination therapy, Novo Nordisk aims to build a stronger moat, especially as competitors like Eli Lilly are also actively exploring similar combination therapies, thereby seizing an early advantage. What are the implications of this high-premium deal for the competitive landscape of MASH treatment and future M&A activity? - Novo Nordisk's acquisition of Akero at a significant premium underscores large pharmaceutical companies' recognition of the immense potential in the MASH treatment market. MASH is an area with substantial unmet medical needs, viewed as the next "blockbuster" market. This deal will undoubtedly drive up valuations for other innovative biotech companies in this space and stimulate further potential M&A activities. - Given the strong link between MASH and obesity/diabetes, pharmaceutical companies with robust metabolic disease pipelines (such as Eli Lilly, Pfizer, etc.) may feel increased pressure to accelerate their R&D investments in MASH or strengthen their pipelines through acquisitions. Competition in MASH R&D and commercialization is poised to intensify significantly in the coming years. What profound impact could efruxifermin's successful launch have on Novo Nordisk's valuation and market positioning? - If efruxifermin successfully gains full approval and launches, it would provide Novo Nordisk with a crucial non-GLP-1 driven growth engine, effectively alleviating investor concerns about its reliance on a single product line. This would transform Novo Nordisk from a GLP-1-dependent giant into a comprehensive leader with a diversified innovative pipeline across a broader spectrum of cardiometabolic diseases. - However, if efruxifermin fails to meet expectations or encounters regulatory hurdles, the up to $5.2 billion investment would become a significant burden, potentially leading to valuation pressure and severely eroding market confidence in the strategic execution under the new CEO's leadership. This deal is essentially a high-risk, high-reward wager, and its outcome will profoundly shape Novo Nordisk's market positioning for the next decade.