Novo to buy MASH drugmaker Akero Therapeutics

Novo Nordisk said this morning that it will buy Akero Therapeutics, the developer of a drug to treat the liver disease known as MASH, for up to $5.2 billion.

In acquiring Akero, Novo is bolstering its pipeline of drugs to treat metabolic conditions like obesity and diabetes. MASH is often the result of obesity. Fat accumulation within the liver leads to inflammation and fibrosis, or scarring. Left untreated, the damage done by severe MASH can cause cirrhosis, liver cancer, and the need for a transplant.

Pharma companies, particularly those with a stake in the global market for obesity drugs, have become increasingly interested in adding MASH drugs to their pipelines. Last month, Roche said it would acquire 89Bio, the developer of a MASH drug that is similar to the one being developed by Akero, for up to $3.5 billion. Earlier this year, GSK bought an experimental MASH drug from Boston Pharmaceuticals for $1.2 billion upfront.

financing

China-focused Expedition raises funds for first trial

Expedition Therapeutics, a company focused on trying to find the most enticing drug candidates from China, has raised $165 million for its first drug trial.

Sofinnova Investments and Novo Holdings co-led the Series A round, and Expedition’s initial investors Venrock and BVF Partners also participated.

Expedition will use the new funds to develop a treatment for chronic obstructive pulmonary disease that was originally developed by Shanghai drugmaker Fosun Pharma.

Read more from STAT's Allison DeAngelis.

PHARMA

U.K. is reportedly considering raising drug spending

The U.K. government has drafted proposals to increase the amount that it pays for medicines, in an attempt to stave off pharmaceutical tariffs that President Trump has threatened, Politico reported.

Currently, the U.K.'s National Institute for Health and Care Excellence (NICE) considers new drugs to be cost-effective if they cost between £20,000 to £30,000 (roughly $27,000 to $40,000) for every extra year of good-quality life they provide. The government's proposals include raising that threshold by 25%, and officials have briefed the Trump administration on the plan, Politico wrote.

The U.K. has long been pressured by the pharma industry to pay more for drugs, and it's now feeling heat from Trump, who argues that countries like the U.K. pay too little for medicines and free load off the U.S., which pays more.

biotech

How a miscalculation may have cost AstraZeneca a rare disease drug

The inventor of an experimental treatment for Wilson disease is now trying to resurrect the drug after buying it back from its former owner, AstraZeneca.

Here's the unusual backstory: AstraZeneca was developing this drug, ALXN1840, but shelved it after it said two studies looking at the treatment's mechanism turned up negative. Patient advocates, however, urged co-inventor Chandler Robinson to continue developing the treatment. So his current company, Monopar Therapeutics, bought the drug last year.

Robinson discovered AstraZeneca appeared to have used an incorrect formula when analyzing the data. When he used a more suitable formula, he found the data do actually show that the drug works. (Some doubts have still been raised about that analysis.)

Monopar is now working to try to get the therapy approved, possibly in the latter half of next year.