Allurion to study balloon and GLP-1 therapy combo

NATICK, Mass. - Allurion Technologies, Inc. (NYSE: ALUR), a medical device company with a market capitalization of $17.7 million focused on addressing obesity, announced today its plan to conduct a clinical study on the combined use of the Allurion Balloon and GLP-1 agonists, aiming to improve long-term adherence and tolerability to GLP-1 therapy. According to InvestingPro analysis, the company currently trades below its Fair Value, despite facing significant operational challenges.

The decision follows observations that a significant number of patients discontinue GLP-1 therapy due to side effects, the need for increasing doses, and costs. Prior research indicates that 30% of patients stop using GLP-1s within the first month, and 58% cease before seeing substantial health benefits. While Allurion maintains impressive gross profit margins of 73%, InvestingPro data shows the company is experiencing rapid cash burn, with analysts anticipating a sales decline in the current year.

The Allurion Balloon, a non-surgical gastric balloon for weight loss, has previously shown promise when used in tandem with GLP-1 agonists. A study published in Obesity Surgery revealed that patients receiving both treatments experienced greater weight loss and co-morbidity resolution after four months compared to those using the Allurion Balloon alone.

Dr. Shantanu Gaur, Allurion’s CEO, stated, "Early data suggests that by combining GLP-1s with the Allurion Balloon, patients can achieve more sustainable weight loss than with GLP-1s alone." He added that the combination might reduce side effects and extend the duration of GLP-1 use, fostering ongoing patient-doctor relationships.

Allurion’s approach to combating obesity includes the Allurion Program, which features the Allurion Gastric Balloon, the Allurion Virtual Care Suite, and the Allurion Connected Scale. Although the Allurion Balloon is currently an investigational device in the United States, the company offers the Allurion Virtual Care Suite to healthcare providers separately to tailor weight-loss therapy for patients.

The upcoming study represents Allurion’s commitment to enhancing obesity treatment options and could, if successful, benefit patients, healthcare providers, and pharmaceutical companies by promoting sustained weight loss, more profitable practices, and increased medication utilization over the long term.

This initiative is based on a press release statement from Allurion Technologies, Inc. and is subject to the usual risks and uncertainties associated with clinical studies and regulatory approvals. With a current ratio of 2.33 indicating strong short-term liquidity but significant debt concerns, investors seeking deeper insights can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Allurion Technologies has been making significant strides in the field of obesity treatment. The company recently announced plans to initiate a clinical study aimed at optimizing muscle mass during GLP-1 therapy in combination with the Allurion Program. The study aims to address the reductions in lean mass often seen with GLP-1 therapy, a prevalent issue in obesity treatment.

Allurion also shared promising results from its AUDACITY FDA pivotal trial, which evaluated the safety and efficacy of the Allurion Balloon, a non-surgical weight loss device. The study revealed that over half of the participants treated with the Allurion Balloon achieved significant weight loss at 48 weeks.

In addition to these developments, Allurion has secured a new patent for advancements in its proprietary Balloon technology, particularly improving the precision of the valve system that controls the balloon’s deployment. This new patent is expected to protect the company’s technology through July 2039.

Furthermore, Allurion has expanded its board with the appointment of R. Jason Richey as a Class II director, effective December 30, 2024. Richey brings a wealth of experience to the board, having held various leadership positions in the medical device industry.

These are recent developments in Allurion’s ongoing efforts to innovate in the field of obesity treatment.

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