The fact that efruxifermin originated at Amgen makes this story even more interesting from a corporate strategy perspective. Amgen developed the Fc-FGF21 fusion and the Pro171Gly stabilization, then let Akero aquire it and advance it to approval, only for Novo to pay $5.2B for what was essentially Amgen's own molecule. This is a classic case of big pharma underestimating an asset's potential and leaving billions on the table when a nimbler biotech proved the value.
Yes, spot on. I recently spoke with a former big pharma CEO whose company had one of the FGF21 programs mentioned in this piece. Their account was nearly identical. “R&D was very interested in the molecule, but we never moved it forward.”
Lets also not forget the strong human genetic evidence of FGF21 with both liver enzymes & triglycerides. e.g. this 2022 paper https://www.sciencedirect.com/science/article/pii/S0026049522002074
The fact that efruxifermin originated at Amgen makes this story even more interesting from a corporate strategy perspective. Amgen developed the Fc-FGF21 fusion and the Pro171Gly stabilization, then let Akero aquire it and advance it to approval, only for Novo to pay $5.2B for what was essentially Amgen's own molecule. This is a classic case of big pharma underestimating an asset's potential and leaving billions on the table when a nimbler biotech proved the value.
Yes, spot on. I recently spoke with a former big pharma CEO whose company had one of the FGF21 programs mentioned in this piece. Their account was nearly identical. “R&D was very interested in the molecule, but we never moved it forward.”
Great summary Alex. Let’s catch up when you have time.
Hi, Alex, do you think there is any regulatory risk in getting antitrust approval for the Akero acquisition? Thanks
"The efficient market hypothesis suggests that asset prices should reflect all available information"
Efficient markets or biotech, pick one bro