Shares of Altimmune (NASDAQ:ALT) jumped 50% in Thursday’s extended trading session as the clinical-stage biopharmaceutical company announced positive topline results for its phase 2 obesity trial of obesity drug Pemvidutide. The news comes at a time when pharma titans Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY) are seeing robust demand for their weight loss drugs.
Altimmune is focused on the development of next-gen peptide-based therapeutics for the treatment of obesity and liver diseases.
Favorable Phase 2 Results
Altimmune’s 48-week Phase 2 obesity trial (Momentum) of Pemvidutide involved 391 individuals with obesity or overweight with at least one co-morbidity and without diabetes. The Phase 2 study revealed that over 50% of subjects experienced at least 15% weight loss on the 2.4 mg dose of the drug. Additionally, more than 30% of people in the study achieved at least 20% weight loss.
Dr. Scott Harris, ALT’s Chief Medical Officer, highlighted Pemvidutide’s safety profile, especially cardiac-related safety, given that many obesity patients are at risk for cardiovascular issues.
Following the favorable results, JMP Securities analyst Jonathan Wolleben noted that Pemvidutide leads to a placebo-adjusted weight loss of up to 13.4% after 48 weeks, which is better than Novo Nordisk’s Semaglutide’s (also called Wegovy) weight loss at the same time point (nearly 12.6%). He added that Pemvidutide continues to have superior reductions in cholesterol, triglycerides, and LDL.
The analyst highlighted that Pemvidutide has a competitive profile based on the top-line data from the Momentum trial, with greater weight loss than Semaglutide, better lipid changes and tolerability than Eli Lilly’s Tirzepatide, and better cardiac safety than LLY’s another obesity drug Retatrutide.
Wolleben reiterated a Buy rating on Altimmune stock with a price target of $16 due to the blockbuster opportunity for Pemvidutide.
Is ALT Stock a Good Buy?
Wall Street has a Strong Buy consensus rating on Altimmune stock based on four unanimous Buys. The average price target of $16 implies a stellar upside potential of 406%. The stock has declined 81% year-to-date as of the end of Thursday’s regular trading session.
