Altimmune's stock pops as analysts see obesity-drug partnership potential

By Eleanor Laise

Drugmakers are racing to catch up with Novo Nordisk and Eli Lilly hunt for promising weight-loss drug candidates

Altimmune Inc. shares (ALT) gained 5% Thursday and have jumped more than 100% this week as analysts see potential for the company to find a partner for its experimental weight-loss drug.

The investigational drug, pemvidutide, is "an attractive obesity asset" for potential partners, given that it's one of the few late-stage weight-loss candidates with positive Phase 2 clinical trial data, Goldman Sachs analysts wrote in a Dec. 1. report.

Altimmune said last week that patients in a clinical trial saw an average 15.6% weight loss after 48 weeks on the highest dose of pemvidutide, and over 30% of patients had 20% or greater weight loss on that dose. People on the drug also saw reductions in LDL cholesterol and blood pressure, Altimmune said.

With the trial data in hand, "we are now in a position to advance our ongoing partnering discussions," Altimmune CEO Vipin Garg said on a call with analysts last week. "We feel very comfortable, given our ongoing discussion, that we will have a partner lined up" by the time the Phase 3 clinical trial begins, Garg said.

Big pharma companies racing to catch up with obesity-drug leaders Novo Nordisk (NVO) and Eli Lilly & Co. (LLY) have lately shown plenty of appetite for smaller players with promising weight-loss candidates. AstraZeneca PLC (AZN) said last month that it would license an experimental obesity and diabetes treatment from Shanghai company Eccogene, and Roche Holding AG (RHHBY) earlier this week announced a $3.1 billion deal to buy obesity-drug maker Carmot Therapeutics.

Altimmune's success with pemvidutide came just ahead of Pfizer Inc.'s (PFE) announcement last week that it would halt the development of a twice-daily obesity pill, danuglipron, as patients in a clinical trial had high rates of nausea, vomiting and other side effects.

The pemvidutide data released last week showed weight loss similar to semaglutide, the active ingredient in Wegovy, but "differentiated by profound loss of liver fat without heart rate increases," Evercore ISI analysts wrote in a Dec. 1 report.

Looking at the weight loss achieved with pemvidutide, along with its potential cardiovascular benefits and relative safety, "that's resonated with partners," Altimmune chief business officer Raymond Jordt said on the call.

Altimmune shares are down more than 50% in the year to date, while the S&P 500 SPX has gained 19%.

-Eleanor Laise

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12-07-23 1236ET

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