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Investing.com - Goldman Sachs has resumed coverage of Altimmune (NASDAQ:ALT) with a Sell rating and a $1.00 price target, representing 79% downside potential from the current price of $4.74. According to InvestingPro data, other analysts maintain more optimistic views, with price targets ranging from $6 to $28.
The investment bank’s analysis focuses on Altimmune’s lead asset pemvidutide, a dual GLP-1/GCGR agonist being developed for obesity and related conditions, with emphasis on liver-specific diseases including metabolic dysfunction associated steatohepatitis (MASH). The company maintains a strong liquidity position, with a current ratio of 15.85 and more cash than debt on its balance sheet.
Goldman Sachs notes that clinical data to date has not shown a meaningfully differentiated profile for pemvidutide in either obesity or MASH treatments, despite the company’s strategic focus on liver-specific applications.
While acknowledging there will likely be room for multiple treatments in these markets, Goldman Sachs identifies significant challenges for Altimmune, which will need either a partnership or additional funding to complete clinical development.
The bank cites pemvidutide’s lack of differentiation in an increasingly crowded clinical landscape as a key factor in its bearish outlook on Altimmune’s ability to execute the full development program needed to bring the drug to market.
In other recent news, Altimmune has enrolled the first patient in its Phase 2 trial evaluating pemvidutide for Alcohol-Associated Liver Disease (ALD). This trial aims to enroll around 100 patients to assess the drug’s effectiveness over a 48-week period. Meanwhile, Altimmune’s Phase 2b trial for metabolic dysfunction-associated steatohepatitis (MASH) showed that pemvidutide met its primary endpoint, achieving MASH resolution in a significant portion of participants without worsening fibrosis. However, the improvements in fibrosis were not statistically significant, prompting mixed responses from the investment community. Despite this, UBS maintained its Buy rating on Altimmune, citing long-term potential for pemvidutide across various indications. H.C. Wainwright also kept its Buy rating, highlighting the drug’s potential to advance to Phase 3 trials. The trial also demonstrated significant weight loss and favorable tolerability, with minimal treatment discontinuation. Altimmune plans to discuss the results with the FDA as it prepares for further trials.
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