Akero Therapeutics, Inc. has recently released its 10-Q report, providing insights into its financial performance and operations. The company is dedicated to developing treatments for patients with serious metabolic diseases, with its lead product candidate being efruxifermin (EFX), currently in Phase 3 clinical trials for the treatment of metabolic dysfunction-associated steatohepatitis (MASH) patients. The company's focus is on addressing the high unmet medical need in this space, particularly targeting MASH, a severe form of metabolic dysfunction-associated steatotic liver disease.
In its 10-Q report, Akero Therapeutics, Inc. discussed its financial condition and results of operations. The company reported net losses of $109.3 million and $56.9 million for the six months ended June 30, 2024 and 2023, respectively. Additionally, the net losses were $151.8 million and $112.0 million for the years ended December 31, 2023 and 2022, respectively. As of June 30, 2024, the company had an accumulated deficit of $683.4 million.
Akero Therapeutics, Inc. highlighted that it has not generated any revenue since its inception and does not expect to do so in the near future. The company anticipates incurring significant expenses for at least the next several years as it advances EFX through later-stage clinical development and seeks regulatory approval for any product candidates that complete clinical development. As of June 30, 2024, the company had cash, cash equivalents, and short* and long-term marketable securities of $848.3 million, which it believes will be sufficient to fund its current operating plan into the second half of 2027.
In the three months ended June 30, 2024, Akero Therapeutics, Inc. reported operating expenses of $65.7 million, representing an 85% increase from the same period in 2023. Research and development expenses for the same period totaled $55.3 million, marking a significant increase from $28.0 million in the corresponding period of 2023. The company also reported a net loss of $56.0 million for the three months ended June 30, 2024, an 80% increase from the net loss of $31.1 million in the same period in 2023.
The company emphasized that its ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of EFX, if approved, and any future product candidates. Akero Therapeutics, Inc. anticipates that its general and administrative expenses will increase in the future as it expands its headcount to support the development of EFX and its continued research activities. The market has reacted to these announcements by moving the company's shares 5.3% to a price of $24.93. For more information, read the company's full 10-Q submission here.
