Altimmune, a biotech company relatively unknown until now, is aiming to disrupt the weight loss medication market dominated by giants like Novo Nordisk. Their lead program, pemvidutide, is showing promising results in clinical trials, posing a potential challenge to Novo Nordisk’s Wegovy, a popular weight loss drug.
In trials, patients treated with pemvidutide showed significant weight loss—15.6% of body mass after 48 weeks compared to just 2.2% in those on a placebo. Crucially, this weight loss came predominantly from fat mass rather than muscle, addressing a common concern with existing treatments like Wegovy. Altimmune’s CEO, Vipin Garg, believes these results could position pemvidutide as a “best in class” medicine if approved.
Financially, Altimmune appears stable with $182.1 million in cash and equivalents as of the first quarter, sufficient to fund ongoing research and development. Despite its small pipeline focusing on cardiometabolic conditions, Altimmune’s stock has seen volatility, rising 73% over the past year but down 47% in the last six months.
Investors should note the inherent risks in biotech investments, particularly regarding the outcome of phase 3 trials and competition from larger companies like Novo Nordisk and Eli Lilly. However, Altimmune’s potential to offer a superior weight loss option could appeal to specific niches concerned about muscle loss.
While Altimmune wasn’t among the Motley Fool’s recent top stock picks, its progress with pemvidutide underscores its potential in the competitive obesity market. Investors considering Altimmune should weigh these factors carefully against the backdrop of a promising yet uncertain biotech landscape.