Altimmune's Pemvidutide Shows Promising 15.6% Weight Loss in Trials, But High Valuation Implies Risk if Development Falters
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Altimmune is developing Pemvidutide (ALT-801) for treating obesity and liver disease like NASH. It targets GLP-1 and glucagon receptors for weight loss while preserving lean mass.
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Pemvidutide showed 15.6% weight loss at 2.4mg dose in trials, reducing liver fat by over 30% in most patients. It could disrupt the obesity market compared to rivals like Ozempic.
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ALT has about $198 million in cash, funding operations for around 3 years. It trades at a forward P/S of 19.9, pricing in potential future sales from obesity indication.
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If approved and successfully marketed for weight loss, Pemvidutide could tap into a $100 billion market. However, clinical or regulatory setbacks could negatively impact the stock.
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Overall, ALT seems to have a promising drug for a large potential market. But its high valuation also implies significant downside risks if development plans falter.