ALT - Altimmune: Going All-In On Pemvidutide

2024-05-29 16:07:48 ET

Summary

• Altimmune's pipeline prospect, pemvidutide, has the potential to be a best-in-class therapy for obesity and nonalcoholic steatohepatitis.
• Pemvidutide has shown promising results in clinical trials, including significant weight loss and improvements in blood pressure and serum lipids.
• Altimmune has gone all-in on pemvidutide, a GLP-1/glucagon dual receptor agonist, and has the potential to secure blockbuster status, but they run the risk of regulatory failure.
• Growing markets and market differentiation could transform the company from a small-cap biotech to a multi-billion-dollar industry leader.

I have been covering Altimmune (ALT) since 2018 when the company was pushing to get their NasoVax flu vaccine through the FDA along with a few more pipeline programs, including an anthrax vaccine and a hepatitis B therapeutic. During the pandemic, Altimmune worked to develop a COVID-19 vaccine and therapeutic, but like the other programs… they failed to hit the marks needed to get onto the market. Now, the company’s singular pipeline prospect is pemvidutide, a GLP-1/glucagon dual receptor agonist being developed for obesity and nonalcoholic steatohepatitis ("NASH"), also known as metabolic-associated steatohepatitis ("MASH"). Altimmune believes pemvidutide's programs could reveal that it is a best-in-class therapy in one of the fastest-growing markets in healthcare. If pemvidutide is successful in the clinic, Altimmune would almost certainly have a blockbuster drug. On the other hand, the company has essentially put all of its eggs in one basket with pemvidutide, which makes ALT a highly speculative ticker with an explosive risk-reward profile. I believe it is essential for ALT investors to have a detailed investment/trading plan that is conducted by strict parameters involving clinical readouts, cash position, and ticker performance....

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