Rami Katkhuda, an analyst from LifeSci Capital, maintained the Buy rating on Akero Therapeutics (AKRO – Research Report). The associated price target is $60.00.
Rami Katkhuda has given his Buy rating due to a combination of factors surrounding Akero Therapeutics’ promising drug candidate, efruxifermin (EFX), and its potential in treating F2/F3 NASH. The optimism is primarily rooted in the impressive efficacy demonstrated by EFX in earlier trial phases, particularly at the 24-week mark, where it showed significant impact on both NASH resolution and fibrosis improvement. These are critical endpoints for accelerated approval, and Akero’s upcoming 96-week HARMONY study results are highly anticipated. Katkhuda is particularly interested in seeing if fibrosis improvement is maintained or enhanced with prolonged treatment despite expectations of high discontinuation rates due to the inconvenience of weekly in-office injections.
Furthermore, the transition to a more patient-friendly administration in the Phase 3 SYNCHRONY trial, with EFX being self-administered at home, could address discontinuation concerns. The safety profile also plays a key role in the Buy rating, with tolerability being a significant factor for patient adherence. Despite some concerns raised over side effects like nausea and diarrhea at higher doses, the low rate of treatment-related adverse events leading to discontinuation in the HARMONY trial at 24-weeks suggests a manageable safety profile. This combination of sustained efficacy, potential for improved patient compliance, and an acceptable safety profile underpins Rami Katkhuda’s positive outlook on Akero Therapeutics’ stock.
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Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AKRO in relation to earlier this year.
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Akero Therapeutics (AKRO) Company Description:
Akero Therapeutics, Inc. operates as a biotechnology company. The firm specializes in transformational treatments for non-alcoholic steatohepatitis (NASH) and other serious metabolic diseases. The company was founded by Jonathan Young and Timothy Rolph on January 24, 2017 and is headquartered in South San Francisco, CA.
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