NATICK, Mass. - Allurion Technologies, Inc. (NYSE: ALUR), known for its efforts in combating obesity and maintaining impressive gross profit margins of 73%, disclosed today its plan to conduct a clinical study aimed at enhancing the effectiveness of obesity treatments. According to InvestingPro data, the company generated revenue of $34.75 million in the last twelve months. The study will explore the combination of the Allurion Program, including the Allurion Balloon and Virtual Care Suite, with GLP-1 agonists to potentially improve muscle mass retention and overall body composition during weight loss.
Historical data has shown that patients undergoing GLP-1 therapy often experience a significant reduction in lean mass. Previous studies involving the Allurion Balloon have indicated promising results, with patients not only losing weight but also gaining or maintaining muscle mass. While the company’s stock has faced challenges, declining over 96% in the past year, InvestingPro analysis indicates the stock may be undervalued at current levels, with 18 additional ProTips available for subscribers. One study with 571 participants noted a 5.6% increase in lean body mass alongside a 14% total body weight loss over four months. Another study involving 167 patients observed a 15.7% weight reduction without any muscle mass loss.
Dr. Shantanu Gaur, Founder and CEO of Allurion, stated, "Reductions in lean mass and muscle wasting are significant unmet needs in the GLP-1 space, and our early data suggests that we may have a powerful tool in achieving more metabolically healthy weight loss." The company’s goal is to demonstrate that the integration of their balloon-based technology with GLP-1 therapy can lead to significant weight loss while simultaneously increasing muscle mass and enhancing overall body composition.
The Allurion Program merges the Allurion Gastric Balloon, which is unique as a swallowable, procedure-less gastric balloon, with a comprehensive virtual care platform. Despite maintaining a current ratio of 2.33, indicating solid short-term liquidity, the company faces significant cash burn challenges, as revealed in the detailed Pro Research Report available on InvestingPro. This platform includes a mobile app for consumers and Allurion Insights for healthcare providers, which features the Iris AI Platform, as well as the Allurion Connected Scale. The Virtual Care Suite is also offered separately to providers to customize and manage weight-loss therapy for patients, regardless of their treatment plan.
The Allurion Balloon is currently considered an investigational device in the United States. The company’s announcement is based on a press release statement and reflects plans for future clinical studies that are subject to regulatory approval and successful completion. As with all forward-looking statements, these plans are not guarantees of future performance and are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations.
In other recent news, Allurion Technologies has been making significant strides in its operations. The company has secured a new U.S. patent for advancements in its proprietary Balloon technology, taking its U.S. patent count to 20. This development is seen as a reflection of Allurion’s commitment to innovation in non-surgical weight loss treatments.
The company also reported promising results from its AUDACITY FDA pivotal trial for the Allurion Balloon, a non-surgical weight loss device, with over half of the participants achieving significant weight loss at 48 weeks. In addition to these developments, Allurion expanded its board by appointing R. Jason Richey as a Class II director, indicating an effort to strengthen its leadership.
Allurion has also announced a one-for-twenty-five reverse stock split, aiming to elevate the market price of its common stock. The company’s third-quarter revenue was reported to be $5.4 million, leading to a revision of its full-year 2024 revenue guidance to fall between $30 million and $35 million. In response to these financial challenges, Allurion plans to cut its operating expenses by half and reduce its workforce by 50% by 2025.
In analyst notes, TD Cowen maintains a Buy rating for Allurion, while Chardan Capital Markets has downgraded the company’s stock from Buy to Neutral. These recent developments provide a snapshot of Allurion’s current situation in the market.
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