AKRO Stock Forecast & Price Target

Akero Therapeutics has recently announced highly promising preliminary top-line 96-week results from its Phase 2b SYMMETRY study, showing that efruxifermin is the first drug to achieve a statistically significant reversal of cirrhosis in patients with MASH in a randomized controlled trial. The company's share price surged 99% due to these positive results, which are expected to be backed by favorable safety and tolerability data at Week 52 and evidence of fibrosis improvement from an earlier study. Consequently, revisions to financial models reflect increased probability of success in F4 patients from 20% to 65%, highlighting a substantial opportunity in the cirrhotic market segment and an updated “excess cash” value of $2.81 per share, signaling a stronger financial outlook for Akero Therapeutics.

Akero Therapeutics Inc reported a significant FY2024 net loss of $252.1 million, equating to a loss of $3.75 per share, primarily driven by high research and development expenses totaling $247.5 million. The company faces critical risks, including potential adverse outcomes from clinical trials, safety concerns, and delays in operational timelines, which could hinder its ability to secure sufficient funding for continued operations. Additionally, the market exclusivity projected through 2037 may be tempered by the uncertainties surrounding treatment outcomes and the company’s long-term financial sustainability.