What the bad jobs report means for markets
On Friday, Citizens JMP analyst Jonathan Wolleben maintained a Market Outperform rating and a $25.00 price target for Altimmune (NASDAQ:ALT) stock, traded on NASDAQ: ALT. Currently trading at $5.20, the stock sits well below the analyst consensus target range of $12-28. Wolleben’s endorsement comes in light of promising data regarding Altimmune’s drug pemvidutide, which has shown significant reductions in liver fat. These outcomes are closely linked with positive responses in fibrosis improvement and MASH resolution in histologic endpoints.According to InvestingPro, ALT maintains strong liquidity with a current ratio of 13.11 and holds more cash than debt on its balance sheet.
Wolleben highlighted the potential for pemvidutide to be the first incretin-based therapy to demonstrate histologic improvement after just 24 weeks. Additionally, it could become the first MASH candidate to achieve statistical significance on fibrosis within the same timeframe, alongside meaningful weight loss. The analyst’s optimism is further bolstered by the drug’s prospects in addressing alcohol use disorder (AUD) and alcoholic liver disease (ALD), given the similarities these conditions share with obesity and MASH.
Anticipation is building as the first Phase 2 trials for pemvidutide are expected to commence shortly. Wolleben has assigned a 60% probability of success (POS) to pemvidutide in treating MASH. Moreover, he projects that the drug could generate over $2.5 billion in peak U.S. sales, should it reach full market penetration.
The positive assessment of pemvidutide’s potential is based on the drug’s ability to meet crucial endpoints in clinical trials, which is a significant step forward in treating MASH and related disorders. The upcoming Phase 2 trials will be a critical phase for Altimmune as the company seeks to validate the efficacy and safety of pemvidutide and expand its use to additional indications.
In other recent news, Altimmune Inc. reported its fourth-quarter 2024 earnings, showing a slight beat on earnings per share (EPS) forecasts with an actual EPS of -0.33 compared to the anticipated -0.34. However, the company’s revenue was significantly below expectations at $5 million, falling short of the forecasted $714 million. Despite this revenue shortfall, the company’s strategic developments have captured investor interest. Altimmune is focused on its ongoing pemvidutide trials, with a Phase 2b trial readout expected in the second quarter of 2025. The trial aims to position pemvidutide as a potential treatment for metabolic dysfunction-associated steatohepatitis (MASH).
H.C. Wainwright has maintained its Buy rating on Altimmune stock with a $12 price target, citing optimism around upcoming trials and strategic milestones. The firm highlighted the potential of pemvidutide to improve fibrosis in MASH patients, which could lead to significant advancements in treatment options. Altimmune’s financial position remains robust, with $132 million in cash, expected to sustain operations into the second half of 2026. Additionally, the company plans to expand pemvidutide into new metabolic indications, with Phase 2 trials set to begin in mid-2025. These developments underscore Altimmune’s strategic positioning in the pharmaceutical market.
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