Novo Nordisk agreed to acquire Akero Therapeutics, a North American biotechnology company, for up to US$5.2 billion in cash, according to a note released this Thursday, 9.
The transaction is expected to close near the end of the year.
Novo Nordisk said the acquisition will contribute to its strategy of developing medicines for people living with diabetes, obesity and their associated comorbidities.
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Akero is developing a drug called EFX to treat MASH, an obesity-related liver disease.
Under the terms of the deal, the Danish company will initially pay $54 per share in cash, or $4.7 billion, at closing.
Akero shareholders will also receive a contingent value right of $6 per share in cash, or a total of $500 million, upon U.S. regulatory approval of the American company’s drug for the treatment of compensated cirrhosis due to steatohepatitis associated with metabolic dysfunction by June 30, 2031.
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*With information from Dow Jones Newswires
