Biotech Values

[Mufaso]

I don't think AKRO's ~60% selloff is an overreaction. Nor do I think ENTB's ~35% sympathy decline is an overreaction either.

I believe their MOA (FGF21 Analogue) was generating excitement because it was providing possibly superior fibrosis improvement compared to say MDGL's or VKTX's TRß agonists. The fact that AKRO's EFX could not achieve statistical significance for at least a one-stage improvement in fibrosis after 36 weeks really eliminates fibrosis efficacy as an advantage for this moa class and I question whether these drugs would be commercially viable as a result.

Also - almost all companies with NASH drugs being a primary market have declined by around 40-50% on a recently except AKRO and ENTB on the theory that the popularity of weight loss drugs was going to significantly reduce the NASH market. Until this point AKRO was basically unchanged and ENTB was up significantly YTD. So these two companies have in effect only just "caught up". I doubt that AKRO or ENTB will be able bounce back given the current NASH market sentiment.