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Investing.com - Citizens JMP analyst lowered the price target on Altimmune (NASDAQ:ALT) to $15.00 from $25.00 while maintaining a Market Outperform rating. The stock, which has declined over 34% year-to-date and currently trades at $4.74, continues to show high price volatility according to InvestingPro data.
The price target reduction follows pemvidutide’s statistical miss on fibrosis endpoints in its clinical trial, which caused Altimmune shares to drop 39% from pre-data levels, though the stock has since regained some ground. With a market capitalization of $384 million, Altimmune maintains analyst targets ranging from $6 to $28 per share.
Despite the setback, Citizens JMP noted that pemvidutide’s 35% fibrosis response after 24 weeks outperformed Rezdiffra’s 24-28% response after 52 weeks and matched semaglutide’s 37% response after 72 weeks, suggesting potential efficacy despite the high placebo response rate of 26%.
The firm highlighted several positive non-invasive data points from the IMPACT trial, including pronounced liver defatting with 44% of patients achieving normal levels after 24 weeks, significant drops in alanine aminotransferase levels, and statistically significant improvements in markers of fibrosis.
Citizens JMP also pointed out that missing fibrosis endpoints in Phase 2 trials is not uncommon, noting that both Rezdiffra and semaglutide missed in Phase 2 but succeeded in Phase 3, while pemvidutide’s MASH resolution rate ranked among the best observed on both absolute and placebo-adjusted bases. Despite current challenges, the company maintains strong liquidity with a current ratio of 15.85. Get deeper insights into Altimmune’s financial health and 11 additional key ProTips with InvestingPro.
In other recent news, Altimmune has reported a series of developments concerning its lead drug candidate, pemvidutide. The company announced positive topline data from its Phase 2b IMPACT trial for metabolic dysfunction-associated steatohepatitis (MASH), meeting its primary endpoint with significant MASH resolution in patients. However, the trial results showed that while there was improvement in fibrosis, it was not statistically significant compared to the placebo group. Despite these mixed outcomes, H.C. Wainwright maintained its Buy rating on Altimmune, citing the potential for advancing to Phase 3 trials.
In a different development, Altimmune enrolled the first patient in its Phase 2 trial for pemvidutide targeting Alcohol-Associated Liver Disease (ALD). This trial aims to evaluate the drug’s efficacy over 48 weeks across multiple sites. Meanwhile, Goldman Sachs downgraded Altimmune to a Sell rating, raising concerns about the drug’s lack of differentiation in a competitive market. UBS, however, retained a Buy rating, expressing optimism about pemvidutide’s long-term potential across various indications. Altimmune’s ongoing efforts are crucial as the company prepares for discussions with the FDA and potential Phase 3 trials.
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