On Tuesday, H.C. Wainwright adjusted its outlook on Altimmune (NASDAQ:ALT), lowering the company's price target to $12 from the previous $15, while maintaining a Buy rating on the stock. The revision follows Altimmune's recent financial report and corporate update, which included several key developments and one significant setback that influenced the analyst's decision.
Altimmune shared its fourth-quarter financial results on Monday, March 27, 2024, and provided updates on its ongoing projects. The company announced positive body composition data from the Phase 2 MOMENTUM trial, which is testing pemvidutide in overweight and obese patients.
The trial showed that pemvidutide preserves lean mass during weight loss, which may lead to better long-term weight maintenance and a safer profile. Additionally, Altimmune is planning to discuss the Phase 2 findings with the FDA in the second half of 2024 and is actively seeking a partner to advance pemvidutide into Phase 3 trials for obesity treatment.
The company also completed enrollment for its Phase 2b IMPACT trial of pemvidutide in patients with metabolic dysfunction-associated steatohepatitis (MASH), with top-line results expected in the first quarter of 2025. However, the discontinuation of HepTcell, a therapy for hepatitis B virus, after it showed insufficient overall response in a Phase 2 trial, prompted the reduction in the price target. This program halt was the primary reason for the analyst's adjustment.
Despite this setback, H.C. Wainwright remains optimistic about the potential of pemvidutide as a treatment for obesity and MASH, considering it a strong contender in the GLP-1 agonist drug class. The firm's reiteration of the Buy rating reflects confidence in the drug's prospects despite the lowered price target.
Ending the year 2023, Altimmune reported having $198 million in cash, cash equivalents, and short-term investments, positioning it with a solid financial foundation to continue its clinical developments. The company's focus now shifts to advancing pemvidutide and seeking strategic partnerships to support its progress toward potential commercialization.
InvestingPro Insights
As Altimmune (NASDAQ:ALT) navigates the clinical development landscape, financial metrics and market performance provide a critical backdrop for investors. According to data from InvestingPro, Altimmune boasts a significant return over the last week, with a 1 Week Price Total Return of 18.27%. This uptick could indicate a positive market reaction to recent company developments or a broader sector movement.
Despite the optimism surrounding Altimmune's clinical trials, InvestingPro Tips suggest caution due to the company's financial health. Altimmune's Gross Profit Margin stands at an alarming -15345.77% for the last twelve months as of Q1 2023, reflecting challenges in maintaining profitability. Moreover, the Operating Income Margin is reported at -19603.29%, underscoring operational difficulties. Analysts leveraging InvestingPro have also highlighted that the company is not expected to be profitable this year, which aligns with the reported metrics and may temper investor expectations for the short-term fiscal outlook.
Investors seeking a deeper analysis of Altimmune's financial health and market potential can find additional insights on InvestingPro. With a total of 6 more InvestingPro Tips available for Altimmune, which can be accessed at https://www.investing.com/pro/ALT, investors have the opportunity to make more informed decisions. To enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these valuable tips.
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