Akero Therapeutics stock crashed 65% on Tuesday: what happened?

Akero Therapeutics Inc (NASDAQ: AKRO) crashed more than 65% this morning after reporting interim results of SYMMETRY – a Phase 2b study of its non-alcoholic steatohepatitis (NASH) candidate.

Akero Therapeutics’ EFX failed a key test

On Tuesday, the biotech firm said its Efruxifermin did not perform significantly better than placebo in the said clinical trial.

A high dose of EFX improved live fibrosis by at least one-stage in 24% of the patients after 36 weeks. Similar results were observed in 14% of the patients on placebo as well.

But Akero Therapeutics remains convinced that its treatment will show additional improvements at 96 weeks. Earlier this year, the Nasdaq-listed firm said it had sufficient liquidity to fund operations through 2026.

Akero Therapeutics stock is now down more than 70% versus its year-to-date high in June.

How it started: $AKRO UBS Initiates Coverage On Akero Therapeutics with Buy Rating, Announces Price Target of $83

How it's going: pic.twitter.com/Ui1mXrSHDi

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EFX significantly boosted rate of NASH resolution

Akero Therapeutics did confirm, though, that about 60% of patients on Efruxifermin in the clinical trial had NASH resolution in 36 weeks.

Only 26% of the patients on placebo, in comparison, showed similar results. Stephen Harrison – the Principal Investigator of SYMMETRY said in a press release today:

The results are the strongest data set reported to date in a placebo-controlled trial in the difficult-to-treat population of patients with cirrhosis due to NASH.

This update arrives months after the biotechnology company raised about $220 million via a direct offering of more than 5.0 million shares at $42 each. Heading into Tuesday, Wall Street had a consensus “buy” rating on Akero Therapeutics stock.