Altimmune Stock Climbs On New Obesity Drug Trial Data: Retail Sentiment Hits 5-Month High

Shares of Altimmune Inc. (ALT) climbed nearly 4% on Tuesday after the biopharma company presented promising data from its Phase 2 study of pemvidutide, an obesity treatment, at the 60th Annual Meeting of the European Association for the Study of Diabetes in Madrid, Spain.

The MRI-based sub-study of the Phase 2 MOMENTUM obesity trial involved 67 subjects with overweight and obesity, with 50 treated with pemvidutide for 48 weeks.

The lean loss ratio, a key measure of lean mass preservation, was 21.9%, indicating that the majority of weight loss came from fat rather than muscle. Notably, lean mass preservation was even more pronounced in subjects aged 60 and older, where the lean loss ratio was only 19.9%.

Additionally, the study found that pemvidutide led to a preferential reduction in visceral adipose tissue (VAT), a type of fat linked to cardiovascular risk. At the 2.4 mg dose, VAT was reduced by 25.6% at 48 weeks, compared to a 20.1% reduction in subcutaneous fat.

“Preservation of lean mass may reduce the risk of falls, fractures, co-morbidities, and all-cause mortality, particularly in individuals over 60,” said Scott Harris, Chief Medical Officer of Altimmune. “Our data demonstrates pemvidutide's class-leading lean mass preservation, superior to that reported historically with diet and exercise. The robust reductions in VAT would also be expected to lower the risk of cardiovascular disease.”

Altimmune is one of several companies aiming to capture a share of the lucrative obesity drug market currently dominated by Eli Lilly (LLY) and Novo Nordisk (NVO).

Pemvidutide has reportedly shown weight-loss results on par with Novo’s Wegovy, but with enhanced lean mass preservation, setting it apart in a crowded field.

On Stocktwits, retail sentiment for ALT turned ‘extremely bullish,’ hitting 94/100 — the highest score since March, when Altimmune released positive results from another mid-stage trial of the same drug.

One retail investor summarized the excitement, saying, “They just basically proved that pemvidutide is diet and exercise in a needle. What else do people need? They're going to sail through the FDA meeting.”

Altimmune’s pemvidutide combines GLP-1, a hormone that mimics the weight-loss effects seen in Novo’s Wegovy, with glucagon, which holds promise for treating metabolic dysfunction-associated steatohepatitis (MASH), a serious liver disease.

Top-line results from a study of pemvidutide in MASH are expected in Q1 2025.

Still, shares of Altimmune are down more than 35% this year. The latest data could prove to be a turning point, boosting investor confidence as the company continues to advance its pipeline.

Read next: Avocado Stocks Ripen: Retail Goes ‘Extremely Bullish’ On Mission Produce, Calavo Growers After Strong Earnings