Akero Therapeutics Shares Surge After Equity Investment From This Famed Large Cap Biopharma

Akero Therapeutics Inc AKRO announced a $25 million equity investment by Pfizer Inc PFE at $9.90 per share.
The company also announced a term loan facility providing Akero with access to up to $100 million from Hercules Capital Inc HTGC, of which $10 million will be drawn at transaction close.
Together with existing cash, proceeds will support Akero's development of efruxifermin, including two ongoing Phase 2b trials in nonalcoholic steatohepatitis (NASH), manufacture of a drug product-device combination for Phase 3 trials, and initiation of a Phase 3 trial program.
If the term loan is fully drawn, proceeds from these two transactions and budget optimization efforts are expected to fund Akero's current operating plan until Q3 of 2024.
Following the transaction, Pfizer will own approximately 6.7% of Akero's outstanding common stock.
For the term loan, Akero may draw an additional $35 million in two separate tranches upon achievement of near-term clinical and financial milestones.
An additional $45 million may be drawn in a third tranche, subject to the approval of Hercules Capital.
Price Action: AKRO shares are up 10.59% at $9.40 during the premarket session on the last check Thursday.