Akero Therapeutics Inc (AKRO) Reports Q3 2023 Financial Results
Akero Therapeutics Inc (NASDAQ:AKRO) reported its third-quarter financial results and provided a business update.
The company is preparing to enroll patients in Phase 3 SYNCHRONY studies by the end of 2023.
Akero's cash reserves are substantial, with the company having enough funds to operate into 2026.
Net loss for the quarter was $39.7 million, with research and development expenses being a significant contributor.
On November 13, 2023, Akero Therapeutics Inc (NASDAQ:AKRO) released its 8-K filing, detailing the company's financial results for the third quarter ending September 30, 2023. The clinical-stage company, which focuses on developing treatments for serious metabolic diseases, is moving forward with its lead product candidate, Efruxifermin (EFX), for the treatment of non-alcoholic steatohepatitis (NASH).
Financial Highlights
Akero Therapeutics reported a net loss of $39.7 million for the third quarter of 2023, compared to a net loss of $35.5 million for the same period in 2022. The increase in net loss was primarily due to higher research and development expenses, which totaled $38.6 million for the quarter, reflecting the company's investment in advancing EFX through clinical trials. General and administrative expenses were $8 million, a decrease from the $11 million reported in the same quarter of the previous year.
The company's balance sheet remains strong, with cash, cash equivalents, and short-term marketable securities totaling $554.7 million, a significant increase from $351.4 million at the end of 2022. This financial position is expected to fund Akero's operating plan into 2026.
Operational Progress
Akero Therapeutics' President and CEO, Andrew Cheng, M.D., Ph.D., expressed optimism about the evidence supporting the clinical development of EFX for both pre-cirrhotic and cirrhotic NASH. The company is on track to begin enrolling patients in its Phase 3 SYNCHRONY Histology and SYNCHRONY Real-World studies by the end of the year.
NASH is a severe form of NAFLD affecting an estimated 17 million Americans and is the fastest-growing cause of liver transplants and liver cancer in the US and Europe. EFX, Akero's lead product candidate, is designed to address the complex disease state of NASH by reducing liver fat and inflammation, reversing fibrosis, increasing insulin sensitivity, and improving lipids.
Looking Forward
As Akero Therapeutics continues to grow and develop its product candidate, the company remains focused on its mission to meet the high unmet medical need in the treatment of NASH. With no approved treatments currently available for the condition, EFX represents a significant potential advancement in the field.
The company's upcoming milestones include the long-term follow-up week 96 results of the Phase 2b HARMONY and SYMMETRY studies. These results will be crucial in determining the efficacy and safety of EFX as a treatment for NASH.
Investors and stakeholders are watching closely as Akero Therapeutics approaches the commencement of its Phase 3 trials, which could potentially bring the company closer to providing a much-needed treatment option for those suffering from NASH.
For detailed financial tables and further information on Akero Therapeutics Inc's third-quarter performance, readers are encouraged to view the full 8-K filing.
Explore the complete 8-K earnings release (here) from Akero Therapeutics Inc for further details.
This article first appeared on GuruFocus.
