WW - Allurion Technologies: Study Results Cause Rally But I'm Awaiting 2024 FDA Catalyst

2024-06-24 07:30:00 ET

Summary

• Allurion Technologies is developing a weight loss program with a swallowable gastric balloon, receiving great recent findings of the balloon's effectiveness in a study.
• The company currently sells the balloon to Europe, but US potential is still limited by awaiting FDA approval anticipated in late 2024. FDA approval is Allurion's major positive catalyst.
• The current balance sheet is weak even after a debt refinancing, making an equity raise quite likely as a year's worth of cash churn remains on Allurion's balance sheet.
• The valuation is very volatile, as successful product scaling could multiply the stock price, but a failed FDA approval could make the stock nearly worthless.

Allurion Technologies Inc. ( ALUR ) is developing a weight loss program, Allurion Program, that includes a swallowable gastric balloon and a monitoring program that reduce body fat as the balloon takes up space in the stomach, reducing appetite. On the company’s website, Allurion claims an average of 10-15% in body weight loss in the first 16 weeks of the Allurion Program. In the company’s investor presentation , Allurion also claims the offering to be competitive as other programs have high churn rates, health risks, high costs, and muscle mass loss that Allurion’s program doesn’t....

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