Why Is Obesity Drug Developer Altimmune Stock Trading Lower On Wednesday?

Wednesday, Altimmune Inc ALT said the body composition study of pemvidutide showed lean mass preservation, with 25.5% of weight loss derived from lean mass with 74.5% of weight loss from adipose tissue, comparable to the effects historically associated with diet and exercise.

Altimmune will present the complete data analysis at an upcoming scientific meeting.

In December 2023, Altimmune announced topline results from its 48-week MOMENTUM Phase 2 obesity trial of pemvidutide with 391 subjects. 

At Week 48, subjects receiving pemvidutide achieved mean weight losses of 10.3%, 11.2%, 15.6%, and 2.2% at the 1.2 mg, 1.8 mg, and 2.4 mg doses and placebo, respectively, with the near-linear trajectory of continued weight loss observed on the 2.4 mg dose at the end of treatment. 

Pemvidutide is also being developed for Metabolic dysfunction-associated steatohepatitis (MASH). Enrollment is ongoing in the IMPACT biopsy-driven Phase 2b MASH trial.

Topline results after 24 weeks of treatment are expected in the first quarter of 2025.

In February, Kerrisdale Capital announced a short position in the stock, claiming the company had little chance of competing against others in the GLP-1 space and calling it an "obvious dead end."

"Even if pemvidutide did result in 15.6% weight loss, that's not good enough," Kerrisdale said at the time.

Recently,  Biohaven's BHVN CEO Vlad Coric said, "What we are trying to do is result in significant weight loss without losing muscle mass, which is what we see with the GLPs."

In October 2023, Biohaven presented preclinical data demonstrating the ability of taldefgrobep alfa to significantly reduce fat mass while increasing lean mass in an obese mouse model. 

Altimmune reported a fourth-quarter 2023 EPS loss of $(0.54), missing the consensus of $(0.43).

Altimmune had cash, cash equivalents, and short-term investments totaling $198.0 million at December 31, 2023.

Price Action: ALT shares are higher by 7.51% at $9.31 during the premarket session on the last check Wednesday.