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....
Read the full article on Seeking Alpha
For further details see:
Allurion Technologies: Study Results Cause Rally, But I'm Awaiting 2024 FDA Catalyst