Akebia Buys Q32 Bio Drug to Forge Rare Kidney Disease Pipeline
Company to pay up to $600 million for Phase 2 asset, making a strategic pivot as its stock trades near a 52-week low.
Akebia Therapeutics (NASDAQ: AKBA) announced a significant strategic move into the rare disease space, acquiring global rights for a Phase 2-ready drug candidate from Q32 Bio in a deal potentially worth over $600 million. The acquisition aims to build a new pipeline focused on rare kidney diseases, a major expansion for the company whose stock has been trading near its 52-week low.
Under the terms of the agreement, Akebia will pay Q32 Bio an upfront sum of $7 million, with an additional $3 million due in six months. The deal also includes up to $592 million in potential milestone payments tied to development and commercial success, plus royalties on future sales. The acquired asset, formerly ADX-097, has been renamed AKB-097 by Akebia.
The transaction marks a pivotal effort by Akebia to diversify its clinical pipeline beyond its commercial product, Vafseo® (vadadustat), which is approved for treating anemia associated with chronic kidney disease in dialysis patients. By acquiring AKB-097, the company is making a calculated entry into the lucrative and rapidly growing market for complement inhibitors.
Targeting a High-Growth Market
AKB-097 is a next-generation complement inhibitor designed to target the body's overactive complement system, a key driver of tissue damage in many rare kidney diseases. The market for such therapies is substantial and expanding; the global market for complement-targeting drugs for kidney disease is estimated to be worth $1.5 billion in 2025 and is projected to grow to $4.2 billion by 2033, according to market analysis.
This acquisition positions Akebia to compete in a field with major pharmaceutical players, targeting conditions like C3 Glomerulopathy (C3G) and other rare, complement-mediated renal disorders with high unmet medical needs. The move was announced in an official company press release, where Akebia framed it as the establishment of its rare kidney disease pipeline.
Clinical Path Forward
The drug has already completed a Phase 1 clinical trial in healthy volunteers, where it was well-tolerated and demonstrated favorable properties. Akebia plans to leverage this early data to advance AKB-097 into a Phase 2 basket study in the second half of 2026. This type of trial allows the company to test the drug's efficacy across multiple rare kidney disease indications simultaneously. Initial data from this study is anticipated in 2027, which will be a key catalyst for the program and for investors.
Market Reaction and Financial Context
Despite the forward-looking nature of the deal, Akebia's stock has been under pressure. Shares were trading around $1.58 in Tuesday's session, just shy of the company's 52-week low of $1.49. With a market capitalization of approximately $419 million, the potential $600 million total value of the deal represents a significant long-term investment for the company.
However, Wall Street analysts see considerable upside. The average analyst target price for Akebia stock stands at $5.40, suggesting a belief that the company's assets, now including a promising mid-stage pipeline drug, are undervalued by the market. This acquisition could serve as the strategic catalyst needed to begin closing that valuation gap, should the clinical development of AKB-097 prove successful.
By adding a Phase 2 asset, Akebia not only strengthens its development pipeline but also signals a clear strategic direction to investors: building a multi-faceted renal care company with footholds in both broad and rare disease markets.