Akero Therapeutics Reports $70.7 Million Net Loss in Q1 2025, Increases R&D Spending

Akero Therapeutics, Inc. reported a net loss of $70.7 million for the first quarter of 2025, compared to a net loss of $53.3 million for the same period in 2024, reflecting a 33% increase in losses year-over-year. The company's total operating expenses rose to $80.9 million, up from $60.0 million in the prior year, driven primarily by a 37% increase in research and development expenses, which reached $69.6 million. This increase was largely attributed to higher costs associated with ongoing clinical trials for its lead product candidate, efruxifermin (EFX), as well as increased personnel expenses.

In terms of financial position, Akero's cash and cash equivalents decreased to $185.9 million as of March 31, 2025, down from $340.2 million at the end of 2024. However, the company reported a significant increase in its short-term marketable securities, which rose to $500.4 million from $402.8 million. The total assets of the company increased to $1.16 billion, compared to $825.9 million at the end of the previous fiscal year, primarily due to the issuance of common stock and pre-funded warrants in a follow-on public offering that generated $378.4 million in net proceeds.

Operationally, Akero is advancing its global Phase 3 SYNCHRONY program, which includes three clinical trials aimed at evaluating EFX for the treatment of metabolic dysfunction-associated steatohepatitis (MASH). The company has reported positive preliminary results from its Phase 2b trials, indicating that EFX has the potential to reverse cirrhosis and improve fibrosis in patients. As of March 31, 2025, Akero had 79.7 million shares outstanding, an increase from 72.4 million shares at the end of 2024, reflecting its capital-raising efforts.

Looking ahead, Akero anticipates continued significant operating losses as it progresses through clinical development and seeks regulatory approval for EFX. The company expects to require additional funding to support its operations and development activities, which may include equity offerings, debt financing, or strategic collaborations. Despite the challenges, Akero believes its existing cash and marketable securities will be sufficient to fund its operations into 2028, allowing it to pursue its growth strategy and advance its clinical programs.