Akebia Aborts Plans for Reverse Stock Split
April 15, 2023
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Akebia Therapeutics ($NASDAQ:AKBA), Inc., is a biopharmaceutical company that specializes in developing treatments for kidney diseases. Recently, Akebia has announced that it has decided to abandon its plans for a reverse stock split. The proposed split would have resulted in the company consolidating its common stocks into fewer, higher-priced stocks. The decision to forgo the reverse stock split was made in light of the current market conditions, as well as the company’s future plans. Akebia believes that its existing stock structure allows it to remain agile and respond quickly to changing market conditions.
Furthermore, the company states that it is focused on maximizing long-term value for its shareholders, and the reverse stock split would not be the best way to achieve this goal. This news comes as a surprise to many investors and analysts, as many had anticipated a reverse stock split from Akebia. Nevertheless, the company has committed to maintaining its focus on developing treatments for kidney diseases and maximizing long-term value for its shareholders.
Price History
The company’s stock opened at $0.6 on Friday and closed at the same, down by 1.4% from its last closing price. The rationale behind the decision to abort the split plan remains unclear.
However, it could be because of the current market environment where investors are opting to invest more in higher value stocks. With the stock price of Akebia Therapeutics dropping, it appears that the company has decided to focus on increasing its stock value through other means such as increasing revenue, launching new products etc. Akebia Therapeutics’ decision to abort the reverse stock split plan is sure to have an impact on the company’s immediate future. This could affect its long-term prospects as well, especially if the stock does not pick up any momentum in the coming months. Investors will have to wait and see how the company responds given its current predicament. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Akebia Therapeutics. More…
| Total Revenues | Net Income | Net Margin |
| 292.6 | -92.56 | -25.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Akebia Therapeutics. More…
| Operations | Investing | Financing |
| -73.15 | -0.11 | 14.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Akebia Therapeutics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 351.83 | 342.49 | 0.08 |
Key Ratios Snapshot
Some of the financial key ratios for Akebia Therapeutics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.4% | – | -26.3% |
| FCF Margin | ROE | ROA |
| -25.0% | -414.3% | -13.7% |
Analysis
GoodWhale has done an in-depth financial analysis of AKEBIA THERAPEUTICS and have concluded that it is a high risk investment. We have identified 3 major risk warnings in the income sheet, balance sheet, and cashflow statement. The risks are high enough to merit a long and thoughtful consideration before investing in this company. We urge potential investors to register with GoodWhale to access our comprehensive risk analysis and gain more insights into the financials of AKEBIA THERAPEUTICS. We can assist in providing recommendations for more informed decisions about investing in this particular company. Our analysis is reliable and trustworthy and will help guide investors towards making the most informed choices possible. More…
Peers
It engages in research, development, and commercialization of small molecule therapeutics that promote kidney health. Akebia has several competitors in the market, including Nascent Biotech Inc, MEI Pharma Inc, and Albireo Pharma Inc. All these companies are working hard to develop innovative treatments for kidney diseases and other related conditions.
– Nascent Biotech Inc ($OTCPK:NBIO)
Nascent Biotech Inc is a biotechnology company that specializes in the development of novel gene therapies for cancer and other diseases. As of 2023, the company has a market cap of 13.69M and a Return on Equity of 65.07%. The market cap of Nascent Biotech Inc represents the total value of its outstanding shares, which reflects investor confidence in its products and services. The high ROE suggests that the company is making efficient use of its shareholders’ equity to generate profits and reward shareholders with dividends.
– MEI Pharma Inc ($NASDAQ:MEIP)
MEI Pharma Inc is a pharmaceutical company engaged in the development and commercialization of treatments for cancer. The company’s market cap as of 2023 was 30.56M. The Return on Equity (ROE) for the company was -68.64%. This indicates that the company has been experiencing a decrease in its shareholder equity, indicating that it is not generating enough revenue to cover its liabilities. Despite this, MEI Pharma Inc continues to pursue innovative strategies in its attempt to develop treatments for cancer.
Summary
The move is intended to increase the share price, as reverse stock splits can lead to an increase in demand for the remaining shares. This could make it more attractive to investors, which could lead to increased liquidity in the stock. The company has also stated that the move is intended to increase investor confidence in the company and create a better alignment with product development and commercialization goals. The change is subject to approval by the company’s shareholders. Akebia Therapeutics is a company engaged in the development and commercialization of novel therapeutics for patients with kidney and vascular diseases.
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