Buy Rating Justified: Altimmune’s Pemvidutide Shows Best-in-Class Potential for Obesity and MASH

Patrick Trucchio, an analyst from H.C. Wainwright, reiterated the Buy rating on Altimmune (ALT – Research Report). The associated price target remains the same with $12.00.

Patrick Trucchio’s rating is based on a mixture of optimistic projections and strategic moves by Altimmune. The company’s foremost program, pemvidutide, is in development for obesity and metabolic dysfunction-associated steatohepatitis (MASH), which are significant and growing health concerns. Trucchio notes that pemvidutide’s dual mechanism as a GLP-1/glucagon receptor agonist sets it apart from other obesity drugs, suggesting a best-in-class potential. This is underlined by the preservation of lean mass during weight loss, which could lead to better long-term outcomes and a favorable safety profile. The anticipated end-of-Phase 2 meeting with the FDA and the search for a strategic partner to support Phase 3 trials further strengthen the rationale behind the Buy rating.

Moreover, Trucchio underscores the drug’s potential for differentiation in the obesity market due to its ability to target specific patient subpopulations. The safety profile and possible cardiovascular benefits of pemvidutide align well with existing cardio-metabolic franchises, making it an attractive candidate for partnership. Altimmune’s intent to seek FDA guidance for a Phase 3 trial design that could maximize the regulatory label’s breadth enhances the drug’s commercial prospects. Considering the unmet medical needs in obesity and MASH, along with pemvidutide’s promising efficacy and safety data, Trucchio maintains a Buy rating with the expectation of significant revenue generation for Altimmune.

Trucchio covers the Healthcare sector, focusing on stocks such as Alnylam Pharma, Gossamer Bio, and Vir Biotechnology. According to TipRanks, Trucchio has an average return of -13.2% and a 28.51% success rate on recommended stocks.

In another report released on May 10, B.Riley Financial also reiterated a Buy rating on the stock with a $20.00 price target.

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Altimmune (ALT) Company Description:

The Group is development stage company which intend to acquire an operating business, through a merger, capital stock exchange, asset acquisition or other similar business combination. The Group does not have any activities.