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Ex-Akero team takes an oral IL-23 pill public through NextCure merger

Ex-Akero team takes an oral IL-23 pill public through NextCure merger

Money Moves

A $320 million financing backs a once-weekly psoriasis pill and lands the team a fresh Nasdaq listing under 'AVRX'.

July 14th, 2026: NextCure and Avere announce merger

Overview

Updated Jul 14

The team that built Akero Therapeutics and sold it to Novo Nordisk for up to $5.2 billion has a second act. On Tuesday, their new startup, Avere Therapeutics, agreed to merge with struggling public biotech NextCure and raised $320 million to fund it.

The deal is a reverse merger. Avere's owners will hold about 99% of the combined company, which keeps NextCure's Nasdaq listing but trades under a new ticker, AVRX. The money buys years of runway for AVR-001, an experimental pill for psoriasis and inflammatory bowel disease.

Why it matters

Millions of psoriasis patients now inject IL-23 drugs; a once-weekly pill that works as well could change how the disease is treated.

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Key Indicators

$320M
Private financing
PIPE led by Fairmount and Hansoh Pharmaceutical to fund the merged company.
~99%
Avere ownership
Share of the combined company held by Avere's stockholders after closing.
$5.2B
Team's last exit
Novo Nordisk's December 2025 deal for Akero, run by the same executives.
~100 hrs
Drug half-life
AVR-001's long half-life is what allows once-weekly oral dosing.
$2.18B
Hansoh milestones
Potential development and sales milestones owed to licensor Hansoh.

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People Involved

Organizations Involved

Timeline

December 2025 July 2026

3 events Latest: July 14th, 2026 · 2 months ago
  1. NextCure and Avere announce merger

    Latest Deal

    The two companies agree to an all-stock reverse merger paired with a $320 million private placement. The combined company will trade as AVRX and pursue AVR-001.

  2. NextCure shares spike

    Market

    NextCure stock jumps roughly 300% after the announcement as traders reprice the shell around the incoming cash and pipeline.

  3. Novo Nordisk buys Akero

    Deal

    Andrew Cheng's Akero Therapeutics agrees to a sale worth up to $5.2 billion, freeing his team for a new venture.

Scenarios

1

Merger closes on schedule and AVRX starts trading

Likely Resolves by Jan 31, 2027

Discussed by: NextCure and Avere joint press release; company SEC filings

Shareholders approve the deal and the $320 million closes, converting Avere into a Nasdaq company under the ticker AVRX. Both boards back the transaction and the money is largely committed, so the main hurdles are the shareholder vote and routine regulatory review. This is the base case management laid out for the second half of 2026.

2

AVR-001 delivers a positive Phase 2b psoriasis readout

Uncertain Resolves by Q3 2028

Discussed by: Avere management guidance; biotech analysts covering IL-23 drugs

The US Phase 2b psoriasis trial, expected to start in early 2027 and read out in the first half of 2028, shows AVR-001 clearing skin at rates that rival injectable IL-23 drugs. A clean win would validate the once-weekly oral approach and justify the Phase 3 program. A miss on efficacy or safety would strand the company with one asset and a shrinking cash pile.

3

Deal collapses or is repriced before closing

Unlikely Resolves by Jan 31, 2027

Discussed by: Merger-arbitrage traders; SEC deal filings

The transaction falls apart or is materially restructured before it closes. Triggers could include a failed shareholder vote, financing investors backing out, or disappointing new data on AVR-001. Reverse mergers of this size usually close, but they carry real termination risk until the vote. If it breaks, NextCure keeps its listing but loses the pipeline and cash injection.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2018-2025

Akero built and sold (2018-2025)

Andrew Cheng took over Akero Therapeutics before its IPO and built it around a liver-disease drug. In December 2025, Novo Nordisk agreed to buy the company for up to $5.2 billion.

Then

Akero's backers and executives realized a large payout, and the team was freed to start over.

Now

The exit gave Cheng's group the track record and investor relationships that made Avere's $320 million raise possible.

Why this matters now

The same people, and some of the same investors, are behind Avere. Their Akero result is why this new bet drew money so fast.

2022-2024

Reverse merger boom in biotech (2022-2024)

With the IPO window mostly shut, dozens of private biotechs went public by merging into failing listed companies that traded below their cash. Deals often came bundled with large private placements.

Then

Private companies got a Nasdaq listing and fresh cash without a traditional IPO.

Now

The reverse merger became a standard path to public markets for well-funded biotechs, and a soft landing for shells like NextCure.

Why this matters now

The NextCure-Avere deal follows this exact template: a private company with money merges into a cash-poor public shell to skip the IPO.

2023-2026

Oral IL-23 race heats up

Injectable IL-23 drugs like Skyrizi and Tremfya became blockbusters for psoriasis and bowel disease. Rivals including Johnson & Johnson's icotrokinra pushed to match that effect in a daily pill.

Then

Early oral IL-23 candidates showed they could clear skin, though often less powerfully than injections.

Now

A convenient oral drug that matches injectable efficacy could take a large share of a multibillion-dollar market.

Why this matters now

AVR-001's pitch is once-weekly dosing with injectable-like results. That claim is what the Phase 2b trial has to prove.

Sources

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