Novo Nordisk has stopped development of its FGF21 analog zalfermin after the drug failed to show sufficient efficacy in a Phase 2 study, according to sell-side research notes issued on Wednesday. The decision removes a major competitor in the FGF21 class and immediately lifted shares of Akero Therapeutics, whose own FGF21 candidate efruxifermin is in trials for non-alcoholic steatohepatitis. Akero rose as much as 6% to $51.75 in New York trading. Morgan Stanley reiterated an Overweight rating on Akero and kept its $84 price target, saying the Novo Nordisk exit enhances Akero’s competitive position. TD Cowen separately initiated coverage of Akero with a Buy recommendation, also citing the zalfermin discontinuation as a catalyst.