Akero Therapeutics (NASDAQ:AKRO) just flipped the script on the MASH treatment market. Shares surged 112% this morning after jaw-dropping Phase 2b data showed its drug, efruxifermin (EFX), could actually reverse cirrhosisa condition long believed to be irreversible. The breakthrough crushed fears that Eli Lilly and Novo Nordisk's GLP-1 drugs would dominate the space, reigniting confidence in targeted therapies. With 39% of patients in the trial showing fibrosis reversalmore than double the placebo groupthe data isn't just good, it's game-changing. Jefferies wasted no time reaffirming its Buy rating with a $50 price target, while some analysts think Akero could hit $75 if Phase 3 trials confirm the results.

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This changes everything. Jefferies now sees a 75% probability of Phase 3 success, making Akero a prime takeover target as its market cap lags at $3.62 billion despite its potential. Investors took notice, sending shares of competitor 89bio (NASDAQ:ETNB) soaring 51% on the news. Citi also jumped in with a fresh Buy rating, pointing to EFX's potential to shake up the standard of care. If Akero keeps this momentum, it could soon be playing in the big leagues with valuations soaring toward $8 billion. Wall Street is locked in on what's next, and the stakes couldn't be higher.

Meanwhile, not every biotech is celebrating. Keros Therapeutics just hit a roadblock, pausing parts of its Phase 2 TROPOS trial due to unexpected safety concerns. Biotech stocks are a rollercoaster, but Akero's stunning data is proof that when a breakthrough happens, the upside can be massive. With Phase 3 trials on deck, the market is watchingif Akero delivers again, this stock could be nowhere near its ceiling.