Akero Therapeutics Announces Pricing of Public Offering

On January 28, 2025, Akero Therapeutics, Inc. (NASDAQ: AKRO) disclosed in an 8-K filing that it has entered into an underwriting agreement with J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Jefferies LLC. The agreement involves the issuance and sale of 5,333,420 common shares of the company at a public offering price of $48.00 per share. Additionally, the company will offer pre-funded warrants to purchase up to 1,958,247 shares of common stock at a public offering price of $47.9999 per pre-funded warrant.

The underwriters have been granted an option to purchase up to an additional 1,093,750 shares of common stock at $48.00 per share, less underwriting discounts and commissions. The underwriters exercised this option in full on January 29, 2025. The offering is expected to close on or about January 30, 2025, subject to customary closing conditions.

Akero Therapeutics anticipates net proceeds from the offering to be approximately $377.8 million after deducting underwriting discounts, commissions, and offering expenses. The company plans to utilize these funds, along with its current capital, to advance the clinical development of efruxifermin (“EFX”) and various ongoing phase 3 studies. The remainder of the funds will be allocated towards manufacturing, preparation for potential commercial launch, working capital, and other general corporate purposes.

Each pre-funded warrant will be exercisable for one share of common stock at an exercise price of $0.0001 per share. The warrants will be immediately exercisable and can be exercised at any time until all warrants are exercised in full. The company has specified restrictions to prevent the holder from exceeding certain ownership limits.

The offering was conducted in accordance with the company’s Registration Statement on Form S-3ASR (File No. 333-279338), filed with the Securities and Exchange Commission. Legal counsel Goodwin Procter LLP provided an opinion on the legality of the share issuance and sale.

Akero Therapeutics included a cautionary note regarding forward-looking statements, highlighting the risks and uncertainties associated with the offering and other future financial outcomes. The company disclaims any obligation to update these forward-looking statements and advises investors to consult the risk factors outlined in its previous filings with the Securities and Exchange Commission.

The company has appended relevant documents, including the Underwriting Agreement, the form of pre-funded warrant, an opinion of Goodwin Procter LLP, and necessary consent in the 8-K filing.

This news is provided based on the official 8-K form submitted by Akero Therapeutics, Inc. to the United States Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Akero Therapeutics’s 8K filing here.

About Akero Therapeutics

Akero Therapeutics, Inc, together with its subsidiary, engages in the development of treatments for patients with serious metabolic diseases in the United States. The company's lead product candidate is efruxifermin (EFX), which is in Phase 3 clinical trials that protects against cellular stress and regulates the metabolism of lipids, carbohydrates, and proteins throughout the body for the treatment of biopsy-confirmed metabolic dysfunction-associated steatohepatitis (MASH) patients.