Akero Therapeutics Inc said on Monday its experimental therapy reduced liver fat by 65% in a mid-stage study of patients with a type of fatty liver disease called nonalcoholic steatohepatitis (NASH).

The drug, efruxifermin, also met secondary goals as 88% of patients' absolute liver fat level normalized to 5 percent or less, compared to 10% treated with a type of diabetes drug alone, Akero said in a statement.

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Data from the study showed the drug was safe and well-tolerated amongst patients, with most frequent adverse events related to use include diarrhea, nausea, and increased appetite.

Drug developer plans to commence two late-stage studies of the therapy later this year.