Is ALT's rising administrative spending sustainable?

**Altimmune's rising administrative spending may not be sustainable in the long term**. Here's why: 1. **Significant Increase in R&D Expenses**: Altimmune has seen a notable rise in R&D expenses, from $16.9 million in Q4 2023 to $19.8 million in Q4 2024. This increase is part of a broader trend, with the full-year R&D expenses climbing from $65.8 million in 2023 to $82.2 million in 2024. 2. **G&A Expenses on the Rise**: General and Administrative (G&A) expenses also have gone up, from $4.3 million in Q4 2023 to $5.1 million in Q4 2024. The annual G&A expenses increased from $18.1 million in 2023 to $21 million in 2024. 3. **Net Loss Despite Strong Cash Position**: Altimmune reported a net loss of $95 million for the year 2024, up from $88 million in 2023. Despite this, the company maintains a strong cash position, with $132 million expected to fund operations into the second half of 2026. 4. **Strategic Priorities and Uncertainties**: The company is focused on strategic advances, especially in clinical trials for its lead product, pemvidutide. However, there are uncertainties regarding FDA stances on non-invasive tests and competitive pressures. In conclusion, while Altimmune's current financial position and strategic direction suggest a level of resilience, the sustainability of rising administrative spending will depend on the company's ability to manage costs, especially R&D, and to generate revenue from its product pipeline. The high level of R&D spending indicates that Altimmune is investing heavily in its future, which could be risky if not accompanied by a clear path to revenue generation and profitability.