Recent Selloff Is A 'Buying Opportunity' For This NASH Stock, Says Analyst

  • Yesterday, Altimmune Inc ALT announced results from a Phase 1b trial evaluating pemvidutide (ALT-801), a novel glucagonlike peptide-1 (GLP-1) and glucagon dual receptor agonist in non-alcoholic fatty liver disease (NAFLD). 
  • According to HC Wainwright, the results were 'compelling.'
  • The analyst reiterates the $50 price target and Buy rating ahead of the top-line data release for MOMENTUM.
  • However, ALT shares plunged by almost 30%, primarily owing to disappointment in the rate of weight loss generated in the study, the secondary objective in the trial.
  • Placebo-adjusted weight loss in non-diabetic patients of 4.7% was less than some investors had expected.
  • HC Wainwright believes the program remains on track to generate 20%- plus weight loss in non-diabetic obese patients with a lower liver fat content than a traditional NAFLD population. 
  • As the Phase 2 MOMENTUM trial is expected to be fully enrolled by 4Q22 and generate an interim top-line data release after 24 weeks in 1Q23, it is the more significant de-risking event for the pemvidutide program. 
  • Price Action: ALT shares are down 6.50% at $13.46 on the last check Friday.
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