Andrew Cheng, the President and CEO of Akero Therapeutics, Inc. (NASDAQ:AKRO), sold shares worth approximately $3.4 million on November 1, according to a recent filing with the Securities and Exchange Commission. The sales were executed under a pre-arranged Rule 10b5-1 trading plan.
The transactions involved the sale of 108,366 shares of common stock, with prices ranging from $31.472 to $32.499 per share. These sales were part of a series of transactions that also included the exercise of stock options, where Cheng acquired 108,366 shares at a price of $21.1 per share.
Following these transactions, Cheng's direct ownership stands at 605,417 shares. The sales were conducted as part of a trading plan adopted earlier this year, reflecting a strategic approach to managing his holdings in the company.
In other recent news, Akero Therapeutics continues to make strides in its Phase 3 clinical trial for a treatment aimed at MASH patients with compensated cirrhosis, leading H.C. Wainwright to maintain a Buy rating for the company. This trial, named SYNCHRONY Outcomes, is assessing the efficacy of efruxifermin (EFX) in patients at fibrosis stage 4 (F4). The study is a significant step for Akero, marking the initiation of all three Phase 3 trials of EFX.
The SYNCHRONY Outcomes trial is a randomized, placebo-controlled study planning to enroll approximately 1,150 F4 MASH patients, with the primary endpoint being the assessment of fibrosis regression without worsening of MASH after a 96-week treatment period. In addition, the trial will continue to monitor patients for primary outcomes related to mortality and liver-related clinical events.
Investors are keenly awaiting the Week 96 data release from the ongoing Phase 2b SYMMETRY study, expected in the first quarter of 2025. This data is anticipated to provide insights into the long-term effects of EFX on F4 MASH patients and is viewed as a crucial near-term milestone for Akero and its EFX treatment. These are all recent developments in Akero's clinical trials and therapeutic advancements.
InvestingPro Insights
As Andrew Cheng, President and CEO of Akero Therapeutics, Inc. (NASDAQ:AKRO), executes a significant stock sale, investors might be curious about the company's financial health and market performance. According to InvestingPro data, Akero's market capitalization stands at $2.23 billion, indicating a substantial valuation for this biotech firm.
Despite the recent insider sale, Akero has demonstrated impressive market performance. InvestingPro data reveals a strong 119.82% price total return over the past year, with a notable 63.02% return in the last six months alone. This robust performance aligns with an InvestingPro Tip highlighting Akero's "high return over the last year."
However, it's important to note that Akero is not currently profitable. An InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year. This is further supported by the negative operating income of -$234.18 million for the last twelve months as of Q2 2023.
Interestingly, another InvestingPro Tip points out that Akero "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company continues to develop its pipeline. This solid cash position is particularly relevant in the biotech sector, where substantial investments in research and development are often required before profitability is achieved.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Akero Therapeutics, providing a deeper understanding of the company's financial position and market dynamics.
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