INTERNATIONAL BIOTECHNOLOGY TRUST PLC ("IBT")

Novo Nordisk agrees to acquire IBT portfolio company Akero

IBT notes the announcement this morning that Akero Therapeutics, Inc. ("Akero") has entered into a definitive agreement to be acquired by Novo Nordisk for up to $5.2 billion in cash.

Based in San Francisco, Akero is a clinical-stage biotech company focused on metabolic diseases. Addressing an area of high unmet medical need, efruxifermin ("EFX"), its flagship treatment for metabolic dysfunction-associated steatohepatitis (MASH), is in late-stage development.

Under the terms of the agreement, Akero shareholders will receive $54.00 per share in cash at closing and a non-transferable Contingent Value Right entitling holders to receive a cash payment of $6.00 per share upon full US regulatory approval of EFX for treatment of compensated cirrhosis due to MASH, by 30 June, 2031.

This agreed offer represents a 19% premium to Akero's 30-day Volume Weighted Average Price (VWAP), and a 42% premium to Akero's closing price on 19 May 2025, prior to market speculation. As at close of business yesterday, 8 October, Akero represented 2.9% of IBT's Net Asset Value, as included in IBT's regular daily NAV update earlier this morning.

Commenting on the news, Ailsa Craig and Marek Poszepczynski, portfolio managers of IBT, said:

"Novo Nordisk's acquisition of Akero is IBT's 8^th M&A deal for a holding in our portfolio so far this year, and our 33^rd since 2020, with our investment strategy focused on identifying potential acquisition targets continuing to deliver returns for shareholders. Large pharmaceutical companies face challenging patent expiries over the coming years, driving continued appetite for acquisitions of biotech companies. We therefore expect this strong period of M&A activity to persist for the foreseeable future, creating further opportunities for IBT to take advantage."

The updated valuation of IBT's holding in Akero will be included in IBT's NAV as at close of business today, to be reported in the usual way tomorrow morning, 10 October.

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