10 Biggest Stocks with Negative Beta to Consider

7. Akero Therapeutics (NASDAQ:AKRO)  

Number of Hedge Fund Investors: 31  

Beta: -0.25  

Market Cap as of October 13: $2.06 Billion

Akero Therapeutics (NASDAQ:AKRO) is a biotechnology company that is developing a treatment for Metabolic dysfunction-Associated Steatohepatitis (MASH), a condition characterized by the accumulation of fat in the liver. The company’s lead candidate, Efruxifermin (EFX), is an FGF21 analog that has shown strong results in pre-cirrhotic MASH.

MASH is a condition that affects an estimated 250 million people worldwide and is characterized by the accumulation of fat in the liver, inflammation, and fibrosis. The market potential for MASH treatments is estimated to be over $25 billion by 2032.

The MASH market is highly competitive, with many pipeline drugs and one approved drug, resmetirom. Resmetirom, is an oral, liver-directed, thyroid hormone receptor that has been approved for the treatment of NASH with liver fibrosis.

Akero Therapeutics’ (NASDAQ:AKRO) EFX has shown strong results in pre-cirrhotic MASH, with a 63-72% relative reduction in liver fat and a 24-32 U/L reduction in the liver enzyme ALT. However, in the SYMMETRY trial, only 22% to 24% of patients in the drug arm showed at least one stage improvement in fibrosis with no worsening of NASH at week 36.

Akero Therapeutics’ (NASDAQ:AKRO) has a cash balance of $848 million. Research and development expenses for the three-month period ended June 30, were $55.3 million, while general and administrative expenses were $10.4 million. At that rate, the company has a cash runway well into 2027, or beyond its expected date of data drop from the ongoing phase 3 trial.

Akero Therapeutics’ (NASDAQ:AKRO) is a good candidate for a basket of MASH players. The company’s EFX has differentiated itself well in pre-cirrhotic MASH, and the 96-week data may change the outcome in cirrhotic MASH. With a consensus Buy rating from industry analysts, Akero Therapeutics’ (NASDAQ:AKRO) stock has a target price of $45.78, which represents a 42.83% upside potential from its current level.